Business Irish

Sunday 22 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 $9m (€8.1m) from Chinese backer APEC.

This is the latest in a series of delays encountered by the Irish oil and gas explorer in receiving the money.

The funds had been due by close of business yesterday.

However, in a statement this morning Providence said no funds had been received in the company’s account but it has “again received assurances that the $9m loan advance due under the updated FOA [farm-out agreement] is in the process of being paid.”

On the back of this, Providence and its partners have agreed to an extended backstop of on or before August 26.

Meanwhile, in the event that the funds are not received from APEC, Providence said the date by which it will need to have in place alternative financing arrangements in order to provide it with sufficient ongoing working capital has been extended into the third week of September 2019.

Elsewhere, the group said it expects its site survey of Barryroe to begin before the end of August, assuming it receives the funds from APEC.

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