Providence Resources P.l.c.: Update on Barryroe Farm-out Transaction
Monday 17 June 2019
Providence Resources P.l.c., the Irish based Energy Company, provided a commercial and operational update in relation to Standard Exploration Licence (“SEL”) 1/11 which contains the Barryroe oil accumulation (the “Barryroe Project”). SEL 1/11 is operated by EXOLA DAC (40%), a wholly-owned Providence subsidiary, on behalf of its partners, APEC Energy Enterprises Limited and Lansdowne Celtic Sea Limited (10%). The area lies in c. 100 metre water depth in the North Celtic Sea Basin and is located c. 50 km off the south coast of Ireland.
Background
On June 5, 2019, the Company announced that it had agreed certain amendments to the Farm-Out Agreement for the Barryroe Project with APEC Energy Enterprises Limited and, together with EXOLA and Lansdowne, the "Barryroe Partners", including a revised backstop date with APEC for receipt of the US$ 9 million loan advance to June 14, 2019. Pursuant to the terms of the Updated FOA, this US$ 9 million loan is to cover the costs associated with front-end well-site survey operations and pre-drill well consenting.
Further Extension Agreed up to July 5, 2019
Due to delays associated with internal transaction processing with their investors, APEC have formally requested a further extension of time for the payment of the initial US$ 9 million loan. EXOLA and Lansdowne have agreed to this further extension of the backstop date to no later than July 5, 2019.
Well Site Survey Operations
Subject to receipt of all regulatory consents and required financing, the well-site survey operations are expected to commence Q3 2019. The Company will issue a further update in due course.