5th Aug 2019 11:34
(Alliance News) - Providence Resources PLC said on Monday that it has again extended the deadline for an outstanding USD9.0 million payment from APEC Energy Enterprises in relation to the farm-out agreement of the Barryroe field in the north Celtic Sea basin.
Shares in Providence tumbled 27% to 7.80 pence each in London on Monday morning. Shares in Lansdowne Oil & Gas, partners in the Barryroe project, fell 12% to 1.83p each.
The latest extension, this time to August 12 from August 2, is due to the loan payment still going through final processing by bankers HSBC, Providence said.
On July 29, Providence said it received documentation which said the amount had been debited from APEC's accounts but processing by the bank forced the company to extend the deadline of the payment.
The Barryroe field is operated by Providence's subsidiary Exola DAC. EXOLA has a 40% stake in the project, Lansdowne Oil & Gas PLC has a 10% share. with APEC owning the rest.
The USD9.0 million loan will be used to fund work costs in the Barryroe field, and if the financing is received by Providence, well-site survey operations will begin during the third quarter.
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