Providence reveals plans for capital shake-up
PROVIDENCE Resources, the oil and gas exploration company headed up by Tony O'Reilly Jnr announced plans for a capital reorganisation yesterday .
The company plans to consolidate its existing ordinary shares and a subdivision of consolidated shares to create new ordinary shares. It is hoped that the reorganisation will reduce the number of shareholders by nearly half to 13,894 from the current level of 24,223.
The proposed reorganisation will be discussed at the company's EGM on May 26. Under the terms of the reorganisation, it is proposed to have a consolidation of every 1,000 existing ordinary shares of €0.001 into one new ordinary share of €1.
Following the consolidation and sale of the aggregated fractions of consolidated shares, it is proposed that every consolidated share be subdivided into 10 new ordinary shares of 10 cents. Therefore a shareholder who previously held 100,000 shares (at a market price of say 4 cents), will now hold 1,000 shares at €4.
Despite hurricane damage production was up over a quarter with 557,927 barrels of oil equivalent being produced compared with 433,625 in 2008, the company's annual report released yesterday stated.
It revealed that chief executive Tony O'Reilly Jnr had his salary cut by €138,000 last year to €539,000.