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Providence Resources’s wait on joint venture funds nears conclusion

The partners continue to work towards the start of a drill programme later this year.
oil and gas operations
A backstop date in the deal was put back to 10 July

Providence Resources PLC (LON:PVR) told investors it has received communication from HSBC regarding a US$10mln transfer of funds via joint venture partner APEC.

It comprises US$9mln to cover front-end and pre-drill costs for Providence’s EXOLA subsidiary and US$1mln to cover APEC costs.

READ: Providence advances Irish assets despite regulatory and political headwinds

Providence has accordingly now agreed a backstop extension to July 10, to allow the receipt of the funds.

The financing is an advance on the larger funding package agreed to bring APEC into the project, it is in place to enable the advancement of the planned well-site survey operations and pre-drill well consenting work.

Providence and existing partner Lansdowne Oil & Gas agreed the farm-out to APEC in March 2018.

The deal paved the way for a multi-well programme which is expected to bring Barryroe first into development and in-turn into production.

Drilling is anticipated in the fourth quarter of the year.

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