Providence agrees deal on Melody debt facility
Published 18/12/2015 | 02:30
Irish oil and gas explorer Providence Resources has struck a deal to extend its $20m loan facility to May 2018 if needed.
The company agreed $24m in financing with US-based Melody Finance in June 2014. Providence has repaid $4m and had been scheduled to make a $20m repayment in May 2016.
Providence chief executive Tony O'Reilly previously said a debt extension is a 'Plan B' for the firm, which is hoping to complete a farm-out deal for the potentially lucrative Barryroe oilfield as early as possible in 2016.
In a trading update published yesterday, the explorer said it is working with a "number of parties" on a farm out of Barryroe.
Mr O'Reilly said: "We are encouraged by ongoing discussions and hope to be in a position to update further in the new year." He added that the company has agreed the basis of an extension of the company's loan facility with Melody "to May 2018, if required."
Providence, which has an 80pc stake in Barryroe, has been attempting to secure a farm-out partner to help fund the development of the field since its discovery in 2012.
It is estimated the site in the North Celtic Sea Basin could contain 300m barrels of recoverable oil.