Providence plans $74m share sale after court battle

Providence Resources, the Tony O'Reilly jnr-led oil and gas explorer, plans to raise almost $74 million from a share sale.

The company said some of the funds will used to meet payments arising from the company's court battle with Transocean, an offshore drilling company which provided services for Providence's key Barryroe exploration site.

A further $20 million will be used to repay a credit facility plus accrued interest to New York-based specialist lender, Melody Capital.

Providence’s shares have been suspended since mid-April when it was forced into talks with Melody and its financial advisers after London’s Court of Appeal ruled it must pay millions of dollars to Transocean.

At the time its shares were suspended, the company had $4 million of cash.