Irish exploration business Providence Means is set to start a extensive-awaited web site study of its flagship Barryroe discipline later on this month soon after eventually obtaining formal acceptance from the Govt.
The essential enhancement work is required in order to pave the way for a whole drilling round, which is scheduled to start off in the ultimate quarter of the year.
Providence beforehand held a web site survey licence for Barryroe, but relinquished the suitable and reapplied immediately after environmental company An Taisce brought a authorized obstacle towards the Government’s original granting of the licence.
The future do the job will protect a seabed particles clearance, environmental baseline and habitat assessment. The resulting facts will be utilised to figure out the spot of the planned drilling programme.
Previously this week analysts proposed the delay in approval to continue with get the job done at Barryroe – which lies all around 50km off the Cork coast – will most likely drive the prepared multi-perfectly drilling marketing campaign at the site back again until the early part of upcoming yr.
Now that the acceptance announcement has been designed the rapid Providence-relevant focus moves back again onto its funding concerns. A lot of deadlines for receipt of a promised $10m (€8.9m) loan – from Chinese Barryroe development husband or wife APEC – to Providence and junior lover Lansdowne Oil and Gasoline have come and gone. The next deadline is established for Monday.
Providence flagged, before this 7 days, that it may perhaps need to search for option financing resources in order to maintain ample operating money degrees into September if there is continue to no sign of APEC’s bank loan arriving in its financial institution account following 7 days.
The Irish explorer’s United kingdom-based mostly broker Cenkos Securities stated Providence may need to have to begin thinking about boosting refreshing credit card debt or marketing shares to fund progress operate at Barryroe.
“Though funding arrangements still have to be finished, the reality that the 1st stage to drilling the discipline next 12 months is in put should be welcomed by the market,” mentioned Davy analyst Task Langbroek.
However, that investor welcome was slim on the ground. Providence’s share price has taken a battering more than the confusion about its Barryroe task funding. The stock – down close to 20% in the past 12 months – fell a further more 10% regardless of the authorities acceptance notice.
Providence lately declared sweeping moves to cut down its yearly expenses by 65%, such as the laying off of approximately 70% of its complete workforce and a sizeable slimming down of its board of administrators, as well as the closure of its Dublin headquarters.