Providence agrees another extension as APEC submits Barryroe payment

Ireland-based energy company Providence Resources released a commercial and operational update in relation to Standard Exploration Licence 1/11 on Monday, which contains the Barryroe oil accumulation.

The AIM-traded firm said SEL 1/11 was operated and 40% owned by Exola DAC, a wholly-owned Providence subsidiary, on behalf of its partners APEC Energy Enterprises and Lansdowne Celtic Sea.

It said the area lay in 100-metre water depth in the North Celtic Sea Basin, and was located 50 km off the south coast of Ireland.

On 5 June, the company announced that it had agreed to certain amendments to the farm-out agreement for the Barryroe Project with APEC Energy Enterprises and, together with Exola and Lansdowne, including a revised backstop date with APEC for receipt of the $9m loan advance to 14 June, which was subsequently extended to 5 July.

Following that, on 8 July, the firm advised that it had agreed an extension to 10 July and subsequently to 12 July.

“The company can confirm that it has received a letter from the legal representatives of APEC’s funder advising that on 9 July, the funder arranged for the remittance of $10m from HSBC to Providence’s account,” the board said in its statement.

“The legal representatives further advise that the remittance is expected to be completed shortly pending compliance checks by the bank.

“Accordingly, to facilitate this, the Barryroe partners have agreed to a backstop extension of on or before 19 July.”