Irish oil and gas exploration and appraisal company Providence Resources has raised $28 million (€26 million) through a share placing and open offer.
The group intends to use the money to fund costs associated with its multi-well drilling programme of oil and gas projects and prospects, offshore Ireland and the United Kingdom. The money will also be used to cover costs arising from the litigation brought against the company by Transocean Drilling UK arising from the drilling operations on the Barryroe well and the deferred payment for seismic activities carried out in 2014.
The open offer, of one new share at €0.34 for every 4.4 shares held, was taken up 58.1 per cent of shareholders, Providence said following an extraordinary meeting on Friday.
Application has now been made for the shares to be admitted to trading on both the Dublin and London markets. It is expected that such admission will occur on Monday next.
“We would like to express our thanks to our shareholders for showing their continued support to the business. This financing broadens our already strong institutional shareholder base and allows the company to move forward with activities on its diverse asset portfolio including Barryroe, Spanish Point and its exploration prospects off the west coast of Ireland,” said Providence chief executive Tony O’Reilly.
