Open Letter to Pat Plunkett of Providence Resources

September 1, 2017 | Posted by

Dear Mr Plunkett

You will be familiar with my prior missives in regards to the direction of Providence Resources under the stewardship of Tony O’Reilly Jnr. If you have not taken the time to read them, here is the link for you –

Stark fact number 1 – as of today’s date (1 Sep 2017) pretty much every single shareholder in Providence Resources is under water (if you’ll excuse the pun post the Druid drill!). Since you became Chairman and the company raised almost £60m from existing and new shareholders we have lost approx one third of our market capitalisation. This, on top of a 99% decimation in stock price over the last 6 years. That is really some going I am sure you will agree. Indeed, at today’s date the company has invested almost a quarter of a billion dollars of shareholders money in the attempt to catalyse production on the Irish licences. Given that the ex cash market cap is probably less then £30m at this point, only a deluded mad man could not agree that the stewardship of ToR Jnr has been cataclysmic for PVR shareholders.

Following the company recapitalisation last year in which, over subsequent months, we were told by ToR Jnr that the Barryroe farm in would be concluded by end 2016 (which, surprise, surprise turned out not to be the case and, I believe in fact created a false market in the stock) and that the Schlumberger collaboration in the Southern Porcupine basin offered state of the art pre drill appraisal. For us today to sit at a stock price of 8.25p is both a tragedy and a farce. If Drombeg turns out also to be a duster then how much longer are we to swallow the “watch this space” line on the balance of the company’s licences progression?

All that has been achieved by the Board this last 12 months is that a whole new set of supposed “supportive” institutions are now nursing significant capital losses (I wonder how supportive they are now?). All lines seemingly still remain dead on Barryroe and there is no concrete news on Spanish Point drilling… Meanwhile the poor shareholders in Lansdowne Oil & Gas teeter each month on the brink of insolvency due to the latent inability of the Board of PVR (of which the blame in large part lays specifically at Tony O’Reilly’s door) to conclude a commercial deal on Barryroe as they are the minority partners here.

For the love of God at what point does somebody show ToR Jnr the door? The man has a negligible personal holding, continues to reap hundreds of thousands of euros out of the company each year whilst every single shareholder bar none rolls around on the floor holding ever mounting capital losses. Talk about complete misalignment…

Mr Plunkett on behalf of many, many shareholders in Providence Resources – I implore you  – act as a Chairman and not another of ToR’s sycophants and remove him from the company and engineer a merger with a cash rich player that can bring Barryroe into production and progress Spanish Point. The absence of any action in this regard by you will only, by extension as the month’s pass, make you also a laughing stock in oil and gas circles.

R Jennings (a long suffering shareholder)