Providence Resources shareholders approve share placing

Oil and gas explorer conditionally raised $3.3m in April

Shareholders in Irish oil and gas explorer Providence Resources have backed the company’s $3.3 million (€3.06 million) in new funding via a share placing.

On Tuesday afternoon, the results of an extraordinary general meeting (egm) were published, showing support of more than 99.9 per cent of investors for the share placing.

Notably, fewer shareholders were supportive of a resolution to authorise the directors to adopt and implement a new share option scheme, with 79 per cent voting in favour and the remainder voting against the policy. That resolution was introduced as the last share option scheme has lapsed after a decade in operation.

The egm was held after the explorer, listed in both Dublin and London, said on April 6th that it had conditionally sold new shares to “institutional and other investors” to raise funds to provide it with sufficient working capital to see the company through to April 2021.


The shares were issued at a price of 1.5p while those institutional investors were responsible for about $2.63 million of the cash, while a subscription by Norwegian oil and gas development company SpotOn Energy Ltd will raise $370,000.

Admission of the shares is expected to take place on Wednesday, the company's chairman, Pat Plunkett, told the meeting, which was held virtually.

Chief executive Alan Linn updated shareholders on the company's strategy, saying: "We have done a lot of re-engineering to ensure we secure the future of the company. Our core strategy is appraising and developing the Barryroe field [off the southwest coast of Ireland]."

Heads of terms

On April 6th, Providence said it has agreed non-binding heads of terms with SpotOn in relation to its Barryroe well. A farm-out deal for Barryroe has been agreed with other companies twice previously, but on both occasions fell through.

Under the deal, SpotOn has a period of exclusivity until October 31st of this year, during which Providence plans to agree an appraisal work programme and develop commercial terms in an effort to conclude a binding farm-out agreement.

The company was asked on Tuesday how SpotOn would succeed where others have failed. Mr Plunkett noted the term sheet agreed between the two companies and said that work on devising a programme to develop Barryroe was already under way.

Peter Hamilton

Peter Hamilton

Peter Hamilton is a contributor to The Irish Times specialising in business