Providence agrees another extension to Barryroe farm-out backstop date

Providence Resources announced yet another extension to the backstop date for its Barryroe farm-out transaction on Tuesday - this time to 2 September.

The AIM-traded firm operates standard exploration licence 1/11, which contains the Barryroe oil accumulation, via its wholly-owned subsidiary EXOLA DAC, which has a 40% working interest.

Its partners, APEC Energy Enterprises and Lansdowne Celtic Sea, are the other parties on the licence, which lies in water depth of around 100 metres in the North Celtic Sea Basin, 50 kilometres off the south coast of Ireland.

On 5 June, the company said it had agreed certain amendments to the farm-out agreement for the Barryroe Project, with APEC Energy Enterprises, which included a revised backstop date with APEC for receipt of the $9m loan advance to 14 June, which was subsequently extended through various extensions to 26 August.

“As at close of business on 26 August, no funds had been received in the company’s account but the company has received assurances that the $9m loan advance due under the updated farm-out agreement is in the process of being paid,” the Providence board said on Tuesday.

“Accordingly, the Barryroe Partners have agreed to a backstop extension of on or before 2 September.

“In the event that the loan advance is not received from APEC by the revised backstop extension, and noting the creditors on the balance sheet and existing forward commitments, including the planned site survey at Barryroe, the company would need to put in place alternative financing arrangements in order to provide it with sufficient working capital beyond the end of the third week of September 2019.”