Business Irish

Friday 23 June 2017

Irish oil and gas firm Providence to raise €65m from sale of shares

The money will be used to clear debts and cover operating and exploration expenses Photo: Getty
The money will be used to clear debts and cover operating and exploration expenses Photo: Getty
Donal O'Donovan

Donal O'Donovan

Irish oil and gas company Providence Resources is set to raise $73.4m (€65m) from a sale of shares to new and existing investors.

The money will be used to clear debts and cover operating and exploration expenses.

Part of the new capital will be used to pay money due following  a legal battle with offshore drilling services firm Transocean.

Providence had been involved in a legal case with Transocean in relation to the key Barryroe field, in April a London appeal court found for Transocean in the case, a decision that will cost Providence around $7m.

Following the court ruling shares in Providence were suspended, and have yet to resume trading.

Cash from the fund raising will also go to repay $20m owned to Melody Finance, the firm’s lender, with the balance available to fund and exploration running costs.

The bulk of the new shares will be issued at a discounted price of 12pence a share, below the 13.75 pence level where shares traded before being suspended.

The open offer means existing shareholders who will be able to subscribe to new shares at the same rate as incoming shareholders.

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