3rd Sep 2019 11:31
(Alliance News) - Lansdowne Oil & Gas PLC on Tuesday said that the partners of an offshore oil project have threatened to end the exclusivity rights of a Chinese investor which is yet to release a USD9.0 million loan.
Shares in Lansdowne were down 16% at 1.18 pence each in London on Monday morning.
Lansdowne owns 10% of the Barryroe oil project while operator Providence Resources PLC's stake is 40%, through its subsidiary EXOLA DAC. China's APEC Energy Enterprises, which owes the funding, holds the remaining stake.
The deadline for the loan has been delayed again by one week, this time to September 9, and should the Barryroe partners not receive the payment, they reserve the right to end APEC's exclusivity of the project, which is located about 50 kilometres from the south coast of Ireland.
Lansdowne said the Barryroe partners could also pursue legal action against APEC for "contract non-performance".
The farm-out agreement initially included a provision for APEC to provide the loan to by June 14, to fund work on the field. Since then however, the deadline for payment has been extended several times.
APEC previously gave assurances that the loan is in the process of being released.
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