Tuesday 20 August 2019

Providence Resources backer transfers €8.9m loan

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

Ellie Donnelly

Providence Resources has been notified by HSBC bank that the $10m (€8.9m) due from Chinese backer APEC Energy Enterprises has been transferred.

The Dublin-listed oil and exploration company received a letter from the bank on July 5, the date the funds were due, advising of a payment date of July 9.

The loan will be used to fund a survey of the Irish oil and gas 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, 50km off the Cork coast, are expected to take place in the fourth quarter of 2019, a date that has been pushed back because of the delay to the planned survey at the site.

The group now expects the survey to be carried out in the third quarter of this year.

Under the terms of the updated farm-out agreement with Apec, a total of $24m (previously $19.5m) has been allocated to fund the forward costs of Exola, which is the operator of the Barryroe project. These costs include the well-site survey operations and other project related expenditure.

In a statement today Providence said a further update would be provided “in due course.”

Last year's results for the Dublin-listed group showed that losses had declined to €4.8m for the year, from a loss of €20.4m reported in 2017.

By the end of 2018, Providence had no debt and reported total cash and cash equivalents of €7.6m, a decline on the €19.6m in the prior year.

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