(Alliance News) - Lansdowne Oil & Gas PLC on Tuesday said that the partners of an offshore oil project are still yet to receive a USD9.0 million loan promised by Chinese investors APEC Energy Enterprises.
Lansdowne owns 10% of the Barryroe oil project while operator Providence Resources PLC's stake is 40%, through its subsidiary EXOLA DAC. APEC holds the remaining stake.
The backstop date for receipt of the loan has been extended to September 30.
Earlier in September, Lansdowne said the partners of Barryroe project, about 50 kilometres from the south coast of Ireland, threatened to end APEC's exclusivity rights if it does not receive the financing.
Lansdowne at the time said the Barryroe partners could also pursue legal action against APEC for "contract non-performance".
The farm-out agreement initially included a provision for APEC to provide the loan to by June 14, to fund work on the field. Since then, however, the deadline for payment has been extended several times.
APEC previously gave assurances that the loan is in the process of being released.
Shares in Lansdowne were 9.6% lower at 1.13 pence each in London on Tuesday afternoon. Providence Resources was 4.4% lower at 5.5p.
Lansdowne Oil (LOGP)