Delays expected to push Barryroe drilling into 2020
The commencement of the long-awaited drilling campaign at the Barryroe oil and gas field off the Cork coast is expected to be pushed into next year.
Irish exploration company Providence Resources hasn't formally changed the planned drill date from the final quarter of this year but the late start of a necessary pre-drilling site survey and delayed funding from its Chinese project partner, APEC Energy has made a 2020 drill start more likely.
Providence has, for the eighth time, extended the deadline for a $9m (€8m) loan payment from APEC Energy in order to fund work at Barryroe.
The Chinese investor bought a 50% stake in the Barryroe field last year after Providence carried out an exhaustive multi-year search for a development partner.
Next Monday has been set as the latest payment deadline.
Providence said it has received further reassurances that the money is “in the process of being paid”.
Providence also said it has agreed payment for a rig vessel to carry out the aforementioned necessary pre-drilling site survey work at Barryroe, which is expected to commence before the end of August.
Providence previously said it would need to seek alternative financing arrangements — deemed to be either through a share placing or debt financing — by the end of this month if the APEC loan was still outstanding.
The Irish company has now said it has sufficient working capital up to the third week of September.
Providence recently announced sweeping moves to reduce its annual costs by 65%, including laying off nearly 70% of its workforce.
