Providence Resources

Calls time on farm-out agreement

  • Sectors : Resource
  • Companies : Providence Resources

Ratings and price correct at time of issue.

  • Providence Resources

    Closing Price: 4.7p

  • RATING 09/06/11

  • PREVIOUS RATING N/A

DAVY VIEW

Providence has initiated the process to claim back the Barryroe equity assigned to APEC’s 50% working interest in the project. This follows the failure by APEC to perform as agreed under the contractual arrangements for the farm-out, especially the transfer of funds related to a $9m loan advance to Providence. While not unexpected, this is a very disappointing outcome to the process. Fortunately, a recent cash injection has met immediate funding requirements but Barryroe still needs to be appraised – the one constant in the evolution of Providence over the last few years. How that is to be achieved is the immediate concern of management and the Board.

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Oct 1 2019, 08:55 IST/BST

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