Providence announces share placing

Providence Resources has announced details of a share placing which will raise an estimated £41 million (€48.69 million) for the company.

Just over 16 million shares will be placed at a price of 255 pence (€3.03) a share.

The proceeds of the placing will primarily be used for the company's multi-well drilling programme of oil and gas prospects in offshore areas in Ireland and onshore in the UK, the company said, as well as providing capital for seismic studies to be undertaken on certain of Providence's early stage assets in order to assess their suitability for drilling at a future date.

The placing is subject to shareholder approval at an egm which has been scheduled for March 11th.

Providence has licence interests in six offshore basins in Ireland which it has been building up over the last ten years. The company aims to drill 10 wells by 2013. The programe is potentially the largest co-ordinated multi-basis drilling progamme to have been carried out offshore Ireland.

Chief executive Tony O'Reilly said the placing will allow the company to retain a meaningful interest in its offshore assets, and will allow the company to test the hydrocarbon potential of some of the major basins offshore Ireland.