Providence resources released a pre closing statement this morning. The statement provided a general overview of the company’s Irish offshore assets. We were looking for an update on Barryroe farmout and the company’s forward exploration programme. <p>
With respect to Barryroe farm out, the statement stated that it has commenced the farm out process and is in negotiations with a number of parties. There was no change in the forward programme with the Spanish Point appraisal well in Q214 being the most significant exploration event. <p>
Given the independently audited volumes at its Barryroe field, we view Providence as significantly undervalued at current levels and see the completion of the Barryroe farm out as a catalyst to cystalise that value and help close the valuation gap. The Spanish Point appraisal well, if successful, will add 42p per share to risked valuation.
Merrion Stockbrokers Limited (registration no. 307878)
is a limited liability company whose registered office is at
Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.