Providence Resources shares rise on Barryroe funding optimism

Shares in Providence Resources have risen on the back of the oil and gas exploration company indicating that funds necessary to progress the development of its flagship Barryroe field, off the Cork coast, will be forthcoming.

The Tony O'Reilly Jr-headed company has three times extended a deadline for receipt of a promised $9m (€8m) loan advance from APEC Energy Enterprises, its new development partner at Barryroe.

Providence said that the most recent deadline - close of business last Friday - would be the final deadline, with a further extension not being anticipated. However, the company has now agreed to another extension to close of business next Friday, June 19.

The company said it has received notification from APEC's legal representatives that the previously arranged payment "is expected to be completed shortly, pending compliance checks by the bank [HSBC]".

Regulatory and funding delays have pushed Providence's planned $200m five-well drilling programme at Barryroe - which is located roughly 50km off the Cork coast - back towards the end of this year.

Providence's share price got a boost when it recently reported a significant cut in annual losses, but the confusion over the Barryroe funding - even though APEC attributed it to issues with internal transaction processing with investors - has battered it over the past week.

Nevertheless, the stock was up by almost 1% in Dublin and by nearly 3% in London - where most of its trade takes place - on the back of the company's latest announcement.