Wednesday 18 September 2019

Providence further extends funding deadline

Fresh delay: Oil explorer Providence is still waiting for funding from China. Photo: PA
Fresh delay: Oil explorer Providence is still waiting for funding from China. Photo: PA
Ellie Donnelly

Ellie Donnelly

Providence Resources has extended its deadline to receive $10m (€8.9m) from Chinese backer APEC.

Shares in the group have now fallen 35pc since the start of the year.

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The deadline to obtain the funds had been extended to close of business on Monday, in what was the seventh delay encountered by the Irish oil and gas explorer in receiving the money.

Yesterday, Providence said it had received "further assurances" that the loan advances due under the updated farm-out agreement were in the process of being paid.

On the back of this, Providence and its partners have agreed to an extended backstop on or before August 19.

Should the money not be received by that date, Providence said it would need to put in place "alternative financing arrangements" in order to provide it with sufficient working capital beyond the end of the month. Funding from APEC had initially been expected late last year, and was then due to be paid over on June 14.

The deadline was then further extended a number of times in July and this month.

Last week, the group announced job cuts and other immediate cost-saving measures to address a cash crisis, with no sign of the promised finance arriving from China.

On Friday, Providence said it had been granted permission from the Minister of State at the Department of Communications, Climate Action and Environment to undertake a survey over the Barryroe field off the coast of Cork.

Irish Independent

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