Providence no longer extending deadline for APEC funds
Irish oil and gas exploration group Providence Resources will no longer extend the deadline to receive a $9m loan from Chinese backer APEC.
The funds were due to be received by close of business yesterday, in what was the latest in a series of delays with the money being transferred.
In addition, Providence has now advised APEC that it will start the licence reversion process of APEC’s 50pc working interest in SEL 1/11 off the coast of Cork to EXOLA (operator of the Barryroe project) and Lansdowne on a 40pc and 10pc basis, respectively.
In a statement this morning Providence said APEC has been advised that it no longer retains exclusivity in respect of Barryroe – Providence’s flagship prospect– and that Providence is now free to open up commercial discussions with third parties over the asset.
The Tony O’Reilly jrn headed company added that further announcements will be made in due course.
Yesterday shareholders approved raising $3.76m (€3.5m) through a share placing at an extraordinary general meeting (EGM).
The funds raised yesterday will be used to cover costs associated with the re-engineering of the firm's business model. In addition, $500,000 will fund the balance of costs related to the acquisition of the site survey at Barryroe.
The remaining $2.5m will be spent on general working capital for the period to the beginning of February 2020.
This morning Providence said it is now moving forward with the implementation of its redundancy programme (announced in August), where technical and support staff will be made redundant as part of the re-engineering of the company’s business model.