Sunday 21 July 2019

Providence push back deadline to receive €8m funding from Apec

Delays: The Barryroe operation, 50km off the coast of Cork
Delays: The Barryroe operation, 50km off the coast of Cork
Ellie Donnelly

Ellie Donnelly

OIL and gas company Providence Resources has again pushed back a deadline to receive $9m (€8m) of funding from Apec, its farm-in partner in the key Barryroe site off the south west coast.

The loan from Barryroe's Chinese backer was due by June 14. It is now due to be received in July 5, the company said.

"Due to delays associated with internal transaction processing with their investors, Apec have formally requested a further extension of time for the payment of the initial US$ 9m loan."

Providence and its other partner in the project, Lansdowne, have agreed to this further extension of the backstop date to "no later than July 5, 2019", Providence said in a stock market update.

The exploration group, headed by Tony O'Reilly Jr, had initially expected to receive the funds late last year. In a statement earlier this month it said it understood that the earlier delay in receiving the money was in part due to a change in "the composition of Apec's funding mechanism".

The Dublin-listed group said drilling operations at the Barryroe site, 50km off the Cork coast, are expected to take place in the fourth quarter of 2019.

It had previously planned for operations to take place in the middle of this year, but this was delayed.

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