OK JR thanks for that. Makes some more sense now. Speak soon
bye
Keith
Hello there JR. can these retained reserves be used for anything. From what I understand 19m is the amount questioned. Was this cash ever handed over to Transocean ?? If this amount was never handed over to transocean and now does not have to be handed over are we 19m better off. Or was it a case that we would have had to find 19m if the case against Transocean had been lost
Providence had fully covered the transocean costs in its accounts. Surely this ,eans that either cash was paid to Transocean or cash was set aside to cover the potential costs which were seen as current liabilities. So we have a figure of 18 or 19 million that has to be accounted for. You must cover it with something. If this was not the case how were the accounts for 2015 okeyed by Auditors. What would have happened if Providence lost the case. If the 19 million was not covered i.e. paid or cash set aside then surely providence should either have made this know to shareholders and or would have had to have sough additional loans. Thus I believe there must be some sort of cash return for the amount in question or a change in the balance sheet freeing up funds that had been tied down against this potential cost
The US Dollar has appreciated by nearly 20 percent against the Euro. The average cost of production according to Goldman Sachs has dropped by 25% due to rig cost reductions, service company reductions, steel cost reductions etc etc. Thus 40 dollars equates to circa 32 dollars due to forex changes and 25% reduction in costs takes the 32 dollars to 24 dollars we now have a new Cost of Production for Barryroe
Maybe Transocean will provide Providence with a Rig for a couple of months in lieu of payment
Providence need to hold their nerve stop spending money and hold off until 2016 for a good deal if needed. With Oil prices on the ground Oil supply will dry up as projects mothballed and current production shale, canadian tar, deep sea etc become unprofitable
Think price of Oil is going to be manipulated lower. Providence will find it hard to get a decent deal done in this environment. Better for them to cut costs, stop paying salaries to BOD and wait it out until 2016 when storm has passed and Oil prices rebound. Will need another loan to cover monies spent from present loan facility. 10m should be enough. The present Oil war could upset certain countries and trouble may flare in Persian Gulf