Norwegian investor takes stake in Providence
Payment of £200,000 from SpotOn had been due a week ago
Providence’s Barryroe well. Photograph: Finbarr O’Rourke
The Irish-listed oil and gas explorer, Providence Resources has told investors it has received a delayed £200,000 (€222,677) tranche of funding that originally fell due last week from Norwegian investor SpotOn Energy.
SpotOn, which made the payment as part of an overall investment agreement worth $3.3 million, now becomes a major shareholder in Providence after the Irish company issued it new shares equivalent to 3.1 per cent of its stock.
The Norwegian company agreed the deal as part of an exclusivity deal for it to examine coming on board as a partner for Providence’s highly-touted Barryroe oil prospect off the Irish southern coast. In return for its funding it has until the end of October to appraise its potential involvement.
It made an initial payment of £300,000 on April 6th. The second tranche was due last Thursday, but receipt was delayed due to the current “working and travel restrictions” due to coronavirus.
The receipt of the cash means Providence avoids a rerun of a saga similar to what happened last year with a prospective Chinese drilling partner for Barryroe, which ultimately never delivered on its promise of funding.