Providence raises prospect of seeking new partners for Barryroe

Providence Resources has raised the prospect of looking for new development partners at its flagship Barryroe oil and gas field following another missed funding payment deadline by its current partner.

Providence raises prospect of seeking new partners for Barryroe

Providence Resources has raised the prospect of looking for new development partners at its flagship Barryroe oil and gas field following another missed funding payment deadline by its current partner.

It has also begun to "actively" explore alternative funding sources - which analysts have suggested could come either from a debt raise or share sale.

Providence has previously said it has sufficient working capital to cover it up to the third week of September.

The Tony O'Reilly Jr-led explorer has extended - for a tenth time - the deadline for payment of a $9m (€8m) funding loan from Chinese investor APEC Energy, which acquired a 50% stake in Barryroe last year.

The money is to be used to develop the field, which lies off the Cork coast, at which a multi-well drilling campaign is planned for early next year.

The latest deadline for payment from APEC has been set for next Monday, September 9.

Providence holds its annual shareholders' meeting next week, three days after the latest payment deadline. The company has written to APEC saying that it - in the event of non-payment - has the right to end partner exclusivity with APEC and that it will also consider "all legal remedies" available to it - for contract non-performance - including the re-assignment of equity in the asset.

Providence also said that a long-awaited site survey at Barryroe - a key pre-drilling necessity - will commence later this week. A minimum of two locations will be surveyed, with scope to increase that number depending on receipt of funding.

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