Providence Resources grants new boss options over 15m shares

EGM vote required for exploration group’s new employee share option scheme

Photograph: Finbarr O’Rourke

Photograph: Finbarr O’Rourke

 

Beleaguered oil and gas explorer Providence Resources has given incoming chief executive Alan Linn options over 15 million shares in the company.

Mr Linn, who was appointed following the departure of long-time chief executive Tony O’Reilly jnr, will be able to access the options in three equal tranches over the next three years.

The options grant Mr Linn the right to take up the shares at a price of 4 pence sterling per unit, slightly below Providence’s 4.15 pence price in the market at the close of business on Friday.

The options are being issued under the company’s Employee Share Option Plan 2020 which is being established. It therefore requires approval in a vote at an extraordinary general meeting of the explorer. The company has not yet given a date for that meeting.

Mr Linn was announced as the replacement for Mr O’Reilly last week. Mr O’Reilly left the company after 14 years following a a series of failures at Providence that ultimately left it without funding to progress drilling at its key asset, Barryroe.