APEC sends Barryroe-related loan to Exola

After some delays, Providence Resources’ subsidiary Exola is set to receive a previously agreed loan from China’s APEC related to the farm-out of a stake in the offshore Ireland block containing the Barryroe project.

Providence’s subsidiary Exola and partners Lansdowne in 2018 agreed to farm-out a 50% working interest in SEL 1/11 license offshore Ireland, containing the Barryroe field, to a Chinese consortium led by APEC Energy Enterprise, a privately-owned Chinese company which has a strategic partnership with China Oilfield Services.

The parties had later agreed for APEC to provide an advance loan of $9 million to cover the costs associated with front-end well-site survey operations and pre-drill well consenting.

According to the previous agreement, the loan was to be provided by July 5. The advance loan was a part of a bigger deal struck in September 2018 which called for a total of $24 million allocated to fund the forward costs of Exola as the operator of the Barryroe project.

Of the $24 million, $9 million is to specifically cover the costs associated with front-end well-site survey operations and pre-drill well consenting.

Providence on Monday said the funds would be received on July 10.

The company said:”Providence has received a HSBC remittance notification dated July 5, 2019 from APEC’s funder for the transfer of US$ 10 million in favour of Providence’s bank account in Dublin with a payment date of July 9, 2019.

“Of the US$ 10 million, US$ 9 million is to cover EXOLA front-end and pre-drill costs with US$ 1 million to cover APEC costs. Therefore, a backstop extension to July 10, 2019 has been agreed with APEC to allow for the receipt of funds. A further update will be provided in due course.”

The Barryroe oil accumulation lies in c. 100-meter water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.

Providence has previously said that well site survey operations, subject to receipt of all regulatory consents and required financing, are expected to start Q3 2019. In its earlier update, Providence said that drilling would start in the fourth quarter of 2019, instead of, as previously expected 3Q.

The partners in the project in February said that that COSL nominated its 6th generation “COSL Innovator” semi-submersible drilling unit for Barryroe drilling.

Offshore Energy Today Staff

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