Providence eyes $1.8mn in funding
Providence Resources plans to raise up to $1.8mn in a proposed securities and subscription securities placement, in part to support its oil and gas development offshore Ireland, the company said June 17.
The placement will be priced at £0.15/security, and will comprise a single new ordinary share and one £0.015 warrant. The issue price is 35% below Providence's share price at close of trading on June 16, of £0.023.
Providence will use the funding to meet its near-term working capital requirements. The capital will also help fulfil the lease undertaking requirements for its Barryroe oil and gas project offshore Ireland, in the North Celtic Sea Basin.
Barryroe lies in water depths of around 100m and is adjacent to the Petronas-operated Kinsale Head gas field. Barryroe's size is currently estimated at 300mn barrels of oil in 2C recoverable resources.
The Marine Institute's Celtic Voyager vessel was mobilised to Barryroe October 24, kicking off a crucial well site survey. Providence and its project partner Landsdowne have hailed Barryroe as Ireland's largest oil discovery. While the licence contains mostly oil, it is also believed to hold commercial gas volumes.
Barryroe suffered a setback last April when a deal to farm out 50% interest to Norway's SpotOn Energy collapsed. A strategic review to solidify the case for field development was launched in late September.