Providence to raise €16.3m in share placing

Oil and gas exploration firm Providence Resources has agreed terms for a share placing that will raise about £14.4 million (€16.3 million).

The company said the proceeds of the placing will be invested in enhancing production levels and will also provide general working capital

"The net proceeds of this Placing will be used to enhance production levels at the Group's portfolio of assets onshore United Kingdom as well as offshore in the Gulf of Mexico," said chief executive Tony O'Reilly. "The placing will also provide additional working capital for Eirgas's investment of up to 40 per cent of the Kinsale Head assets, which comprise Ireland's only gas production and storage operation."

Mr O'Reilly said 2010 would be an "exciting" year for Providence, and the firm expects to see material progress in its portfolio of development and exploration assets such as those on the Irish Atlantic Margin.