Providence extends deadline for Barryroe funding

Funding had been due to land on July 9th

An appraisal well at Barryroe, off the coast of Cork. Photograph:  Finbarr O’Rourke

An appraisal well at Barryroe, off the coast of Cork. Photograph: Finbarr O’Rourke

 

Providence Resources has confirmed another delay in the advance from an investor of a $9 million loan to cover exploration costs for the Barryroe project off the south coast of Ireland.

Apec Energy Enterprises Limited had already delayed advancing the loan until July 5th, citing issues with “internal transaction processing with their investors”.

Providence said it had received notification dated last Friday of the transfer of the funding, with the money expected to be paid on July 9th, with a further extension granted until Thursday to to allow for the receipt of funds.

However, as of close of business on Wednesday, the money had not yet been received by the Irish exploration company, which is led by Tony O’Reilly jnr.

In addition, another $ 1 million to cover APEC costs had not been lodged.

“The company has not received any additional paperwork from the APEC funder nor its corresponding bank as to verify the actual transfer of funds,” Providence said in a statement. “However, the company has been given assurances that the transfer process is underway, but as of last night [Wednesday] was not complete.

“The Barryroe Partners are seeking immediate clarification from Apec’s funders and its banks on the precise status of the transfer.”

A further extension was granted until close of business today. However, in the event the required funds are not received or in the absence of evidence that the transfer is being processed “as a matter of urgency”, Providence said it did not see any further extensions being given.

The Barryroe prospect lies in about 100 metre water depth in the North Celtic Sea Basin, some 50 km off the south coast of Ireland.

Providence’s share price closed down more than 10 per cent on the Barryroe news.