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Providence shares dented as Chinese partner fails to deliver, Total hands back licence

Shares in Irish oil explorer Providence Resources sank in London yesterday after the firm confirmed it would seek a new partner for its Barryroe asset off the south coast of Ireland.

Providence said Chinese firm Apec had failed to meet another deadline for paying a $9 million loan advance.

Apec farmed into the Barryroe licence in March 2018, taking on a 50% stake, but with Providence retaining operatorship.

The Chinese firm bought 40% from Providence and 10% from Lansdowne.

Providence said the “licence reversion process” of Apec’s stakes would commence and that it was “free to open up commercial discussions with third parties” again.

Providence also announced technical and support staff would be made redundant as part of the “re-engineering” of the company’s business model.

Furthermore, French energy giant Total has relinquished the licence containing the Diablo prospect, in which Providence held a 28% stake.

Providence said the joint venture partners on the licence “could not recommend any further prospect maturation”.

Providence shares were down 16.93% to 3.92p as of 12:30pm today.

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