Providence Resources' new Barryroe partner flags early funding delay

Barryroe oil rig

Irish exploration company Providence Resources has hit a fresh funding snag, with its prospective new development partner for its Barryroe oil and gas field delaying part of its promised introductory funding.

Providence tentatively named Norwegian firm SpotOn Energy as its new Barryroe partner last month, with that deal expected to be completed by the end of October following due diligence which is currently taking place.

SpotOn also took part in Providence’s recent €3m emergency fund raise by investing an initial £300,000 ahead of a further £200,000 tranche. It is the latter tranche which is now held up.

SpotOn said it has experienced delays in closing out the necessary arrangements with its consortium due to current working and travel restrictions around Covid-19. It has told Providence that it will mean a delay of around a week in the secondary payment.

Providence had to hunt for a new partner for Barryroe, which lies off the Cork coast, after funding from previous partner Chinese consortium APEC Energy continuously failed to materialise last year. However, it is understood – at least at this early stage – that such a pattern is not in danger of being repeated.

Providence is hoping to drill necessary appraisal wells at Barryroe by late summer 2021 and could be producing oil and gas from the field by the middle of 2022. It also hopes to use a commercial Barryroe as the centrepoint of a new licence portfolio focused on the Celtic Sea region.



Most Read in Business