By Alex MacDonald
LONDON--Irish oil and gas explorer Providence Resources PLC
(PZQA.DB) said Wednesday that it will raise more than $30 million
via a share placing and an open share offer in order to fund
working capital, litigation costs, and costs associated with its
partnership in Spain.
The dual Dublin- and London-listed firm said it plans to raise
$25.75 million through the private placement of 66,883,113 ordinary
shares with institutional and other investors at a price of 25
pence a share.
It will also raise 5 million euros ($5.7 million) from an open
offer of 14,705,879 ordinary shares at EUR0.34 apiece to qualifying
shareholders.
Providence plans to use the funds to cover working capital and
drilling costs as well as litigation costs brought forward by
Transocean Drilling UK, a unit of Transocean Ltd. (RIG). It will
also use the funds to cover non-drilling costs associated with the
increased equity participation in the Spanish Point Licences where
the company has recently secured an increased 58% interest.
Providence Resources' London shares were down 3.6% at 26.50
pence a share at 0830 GMT, resulting in a market capitalization of
18 million pounds ($29 million).
Write to Alex MacDonald at alex.macdonald@wsj.com
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