‘Disappointing’ delay to Providence loan

$9m now due no later than July 5th

The Barryroe site off the southwest coast of Ireland. Photograph: Finbarr O’Rourke

The Barryroe site off the southwest coast of Ireland. Photograph: Finbarr O’Rourke

 

An investor in oil and gas explorer Providence Resources has delayed the advance of a $9 million loan to cover exploration costs relating to a site roughly 50km off the south coast of Ireland.

APEC Energy Enterprises Limited has delayed advancing the loan due to issues with “internal transaction processing with their investors”. It formally requested an extension for the payment, which Providence and the other partner in the project granted to no later than July 5th.

Davy analyst Job Langbroek said the news was “disappointing”. “While processes involved in transferring funds globally have certainly become more complex, it is hard not to also feel that the delay in permitting to commence the site survey offshore Ireland – for which the loan funds are intended – has not speeded up the process either,” he added.

Under the original agreement, APEC agreed to fund the costs of the survey of the Barryroe site.