Oil exploration company, Providence Resources, says it has been told that the $10 million due from Chinese backer APEC Energy Enterprises is being transferred to it.

The loan will be used to fund the costs associated with a well-site survey and pre-drill well consenting at the Barryroe prospect in the North Celtic Sea Basin, 50km off the south coast.

The exploration is being carried out by EXOLA, a wholly-owned subsidiary of Providence, on behalf of its partners, APEC Energy Enterprises Limited and Lansdowne Celtic Sea Limited.

The loan had been due on June 14th, but a further extension until July 5th was granted on June 17th.

According to a notice lodged with the stock exchange this morning, Providence has now received a notification from HSBC dated July 5th to say $10 million will be sent to Providence's bank account in Dublin by tomorrow. 

As a result, a backstop extension to July 10 has been agreed with APEC to allow for the receipt of funds.  

The date for drilling operations had been delayed because of the delays in carrying out the drilling survey.