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



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.

Download full report with analyst certification and important disclosures

Oct 1 2019, 08:55 IST/BST