leadf
logo-loader
viewProvidence Resources PLC
(
AIM:PVRFRA:PZQA
)

Providence Resources raises US$3mln, enters exclusivity for new Barryroe farm-out

It gives Providence another chance to get the Barryroe oil field project back on-track, so long as it secures shareholder approval in May

Providence Resources PLC - Providence Resources raises US$3mln, enters exclusivity for new Barryroe farm-out

Providence Resources PLC (LON:PVR) has raised US$3mln of new capital and also inked a preliminary agreement for a new farm-out for its flagship Barryroe oil field project.

SpotOn Energy - a Norwegian group which “takes a progressive approach to cost-effective offshore oil and gas field development” - has signed a term-sheet giving it exclusivity until the end of October 2020 to develop new appraisal plans at Barryroe, and agree binding commercial terms for the envisaged farm-out deal.

READ: Providence’s new management relaunches Barryroe farm-out

The Irish oil firm is raising £2.15mln via a share placing to institutional and other investors and SpotOn Energy will subscribe for £300,000 of additional shares, providing funds to meet licence costs for 2020 and working capital out to April 2021.

The new shares will be priced at 1.5p each, a discount of around 13%,

SpotOn will invest another £200,000 within six weeks, with a further subscription at the prevailing share price.

Additionally, two series of share warrants will be issued to SponOn and the participants in the placing – one with a 3p per share exercise price. and the other exercisable at 9p per share.

The equity raise is conditional on shareholder votes at a proposed general meeting, and, the company noted that its ability to continue as a going concern will be “materially compromised” if the funding does not go ahead.

“Shareholders should note that, if the fundraising is not successful, the company’s ability to continue as a going concern beyond mid-May 2020 will be materially compromised and the outcome of the Barryroe farm-out process will be negatively impacted,” Providence said in a statement.

It is anticipated that the general meeting will take place on May 5, allowing an effective admission data for the new shares of May 6.

Quick facts: Providence Resources PLC

Follow
AIM:PVR

Price: 3.6 GBX

Market Cap: £35.1 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Providence Resources CEO Alan Scott Linn presents at the Proactive One2One...

Providence Resources CEO Alan Scott Linn presents at the Proactive One2One Virtual Forum. Providence Resources is an Irish based Oil and Gas Exploration Company with a portfolio of appraisal and exploration assets located offshore Ireland. Providence’s shares are quoted on the AIM in...

on 26/10/20

2 min read