Providence Resources’ wait for APEC loan drags on

July 29, 2019, by Offshore Energy Today

Providence Resources’ wait for the Chinese loan will be extended again as the cash, claimed to be sent, has yet to reach Providence’s bank account.

As previously reported, Chinese firm APEC had agreed to provide an advance loan of $9 million to Irish oil firm Providence. The funds would cover the costs associated with front-end well-site survey operations and pre-drill well consenting for the Barryroe prospect off Ireland.

The backstop date for the receipt of the funds has since been delayed several times.

APEC on July 8 said it had sent the funds, but the funds never reached the Providence bank account. Providence at the time even said it would no longer give any extensions to the backstop date beyond July 12.

After eventually being reassured by APEC that the funds had indeed been sent, Providence then extended the deadline again to July 26, blaming the delay on the banking processes.

Come Monday, July 29, Providence said:” As at close of business on 26 July 2019, no funds had been received in the Company’s account.”

However, Providence said Monday that it had been provided with a copy of further documentation provided to APEC’s funders HSBC showing that $10 million had been debited from the APEC’s account for payment to Providence’s designated account.

“The documentation confirms that the payment date is still pending due to final processing by HSBC. Accordingly, to facilitate this, the Barryroe Partners have agreed to a backstop extension of on or before August 2, 2019,” Providence said.

As said earlier, the funds are to be used by Providence subsidiary EXOLA to cover the costs associated with front-end well-site survey operations and pre-drill well consenting for the Barryroe prospect.

The oil accumulation sits in 100-meter water depth in the North Celtic Sea Basin and is located circa 50 kilometers off the south coast of Ireland.