Oil and gas exploration firm Providence Resources said it will begin the licence reversion process for its Barryroe farmout following yet another missed deadline for receipt of funding from its Chinese backer Apec.
Providence had given Apec several deadlines over the past three months for receipt of the $9 million loan. The money was to cover the cost of working on its Barryroe oil find off the south coast. However, problems with bank transfers had been blamed for the most recent delays in receiving the money.
Providence said it has not extended the backstop, and had advised Apec that it will commence the process for Apec’s 50 per cent working interest in SEL 1/11 to revert to EXOLA and Lansdowne on a 40 per cent and 10 per cent basis, respectively.
Providence also said Apec no longer retains exclusivity, with Providence now free and to open up commercial discussions with third parties.