viewProvidence Resources PLC

Providence Resources moves funding deadline ahead of Barryroe survey

A new programme of well drilling promises to drive Barryroe towards development and in turn production, but that remains subject to the receipt of funds from Chinese partner APEC.

Providence Resources PLC - Providence Resources sets back funding deadline as it prepares for Barryroe survey
A new deadline of 19 August has been set

Providence Resources PLC (LON:PVR) told investors that it expects the Barryroe well site survey will commence later this month, subject to receipt of funds from Chinese partner APEC.

“The nominated vessel is currently finishing up current activities in the North Sea prior to the planned mobilization to Barryroe,” the company said in a statement.

It has today further extended the deadline for the pending US$9mln loan from APEC, as part of the farm-out agreement, and the company noted that whilst funds are still awaited it had received “further assurances” that it is in the process of being paid.

A new backstop date of 19 August has been agreed.

On Friday, Providence announced that it had been granted regulatory approval for its proposed well site survey at Barryroe.

Ireland’s minister of state for the Department of Communications, Climate Action and Environment granted permission for a seabed debris clearance, environmental baseline and habitat assessment site survey. It is a key precursor to planned new drilling which was originally slated to begin later this year.

It came days after Providence revealed a number of material corporate changes.

In the statement, the company told investors that there had been "an immediate requirement to re-engineer Providence’s business model".

It explained that the farm-out saw the company transfer operatorship of most of its key assets and has substantially reduced the technical role of the company in its projects. Additionally, it noted that it is not a revenue generating company and it has been unable to expand its operations into other international markets.

Providence intends to relocate to a smaller office, technical staff will be made redundant and it is reducing the size of its board.

Quick facts: Providence Resources PLC

Price: 5.1 GBX

Market: AIM
Market Cap: £42.93 m

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