Business Irish

Tuesday 20 August 2019

Providence once again extends funding deadline

Providence Resources’ Barryroe operation, 50km off the coast of Cork
Providence Resources’ Barryroe operation, 50km off the coast of Cork
Ellie Donnelly

Ellie Donnelly

Shares in Providence Resources were down more than 2.6pc yesterday afternoon, after the group extended a deadline to receive $10m (€8.9m) from Chinese backer APEC to August 2.

This marks the sixth delay encountered by the Irish oil and gas explorer in receiving the money.

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The company previously said it had received a letter from HSBC Bank on July 5, saying the funds would be paid on July 9.

A deadline to receive the funds was then extended to July 12, when the group said it did not expect to give any further extension. However, it was then extended until July 19, and subsequently until July 26.

Yesterday, the company said it had been provided with further documentation by HSBC Bank, showing that the $10m has been debited from the payee's account for payment to Providence.

"The documentation confirms that the payment date is still pending, due to final processing by HSBC," Providence said.

The group and its associates, collectively known as the 'Barryroe Partners', have now agreed to an extension to August 2 for receipt of the money.

The loan is to fund a survey of the explorer's Barryroe prospect off the Cork coast.

Funding from APEC had initially been expected late last year, and was then due to be paid over on June 14.

Drilling operations at the Barryroe site are expected to take place in the fourth quarter of 2019.

Irish Independent

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