Headlines
• In Brief:
Petroceltic (LON:PCI – 7.5p) – Shareholders, Your Move
Providence Resources (LON:PVR – 16p) – Déjà Vu
Tlou Energy (LON:TLOU/ASX:TPU - 3.63p/A$0.07) – Development Pending Contingent Resources or Straight Up Reserves?
In Brief
• Petroceltic (LON:PCI – 7.5p) – Shareholders, Your Move: News late yesterday that Sunny Hill, a company wholly owned by Worldview, had acquired 69.44% of Petroceltic’s Senior Bank Facility has put it in the driving seat, and unless the shareholders outside of Worldview are going to support management, or engage with Worldview, it would appear as if Worldview will now be successful in asserting control over the Company. So now, it is down to shareholders as to whether they want to see the value of the Algerian asset fully reflected in the share price, or whether they just give up.
• Providence Resources (LON:PVR – 16p) – Déjà Vu: We think we have been here before, and once again we are pleased that the wider portfolio is so prospective, but it is hard to really look beyond Barryroe. There is growing concern that the resources that the Company has may be rededicated to exploration and appraisal elsewhere, and while it in the long run may result in cash flow quicker than would otherwise be expected from Barryroe, no matter how hard the Company will try, there will be the thought that Barryroe just isn’t the asset that we all believe it to be. The Company now has some tough choices to make, and perversely, the low valuation will actually make that decision easier, as quantitatively, at a ~$32mm valuation, there is very little contribution from Barryroe anyway.
• Tlou Energy (LON:TLOU/ASX:TPU - 3.63p/A$0.07) – Development Pending Contingent Resources or Straight Up Reserves: Today's interim statement provides a succinct summary of the activity over the period to this point, and quite rightly everything is directed towards delivery of the first firm data point on which the route to valorisation can be defined, namely the maiden Reserves statement. We say Reserves, but in reality, there is an interim stage before the FEED phase that could see the Company report “Development Pending Contingent Resources,” which would give us a better understanding of the wider opportunity opposed to the narrower Reserves definition. With the flow test results expected in the next few weeks, this marks the start of the next stage of appraisal. All in all, we think the Company have made excellent progress towards achieving limited Reserves, but more progress in elucidating the full opportunity they its acreage provides.