Tuesday 16 July 2019

Providence shares jump after Chinese payment

Providence CEO Tony O’Reilly
Providence CEO Tony O’Reilly
Ellie Donnelly

Ellie Donnelly

Shares in Providence Resources rose almost 8pc yesterday, following confirmation that the $10m (€8.9m) due from Chinese backer APEC Energy Enterprise has been transferred.

The Dublin-listed oil and exploration company, led by CEO Tony O'Reilly Jnr, received a letter from HSBC Bank on Friday, the date the funds were due, advising on a payment date of July 9.

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

The loan will be used to fund a survey of the Irish oil and gas explorer's Barryroe prospect 50km off the Cork coast.

Drilling operations at the site 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.

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, as well as other project-related expenditure.

In a statement yesterday, Providence said a further update would be provided "in due course".

Last year's results for the 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.

Irish Independent

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