Providence Resources shares fall on Barryroe funding delay
Shares in Irish oil and gas exploration company Providence Resources fell 16% on news of a further delay to a $9m (€8m) funding advance for its flagship Barryroe field off the Cork coast.
The loan is due from APEC Energy, the leader of the Chinese consortium which came on board as Providence's development partner for Barryroe last year.
The money - which will cover initial work leading up to a long-awaited drilling campaign at Barryroe, which itself has been delayed until the tail-end of the year - was already on pause awaiting Providence gaining fresh approval for a site survey.
That approval is expected this month and July 5 has been set as the new deadline for APEC's loan.
"The news that there has been an additional delay in the receipt of the loan, due as part of the original farm-out agreement with APEC Energy Enterprises and its Chinese partners, is disappointing," said Davy analyst Job Langbroek.
Providence's shares have fallen 34% in the past 12 months.
The loan delay has been largely attributed to "internal transaction processes" with APEC's investor group.
"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," Mr Langbroek said.
Providence is due to report its 2018 annual results at the end of this month.
