Providence Resources is to raise up to US$1.8mln through a placing and subscription to move forward with its Barryroe oilfield development in the Celtic Sea, offshore Ireland.
The fundraise will be at 1.5p per unit, which comprises a new share and a warrant.
Institutional and other investors will take part in the placing, which will be carried out through a bookbuild process, while certain unspecified investors will take part in the subscription.
The issue price represents a discount of 35% from the closing price yesterday.
Providence added the money will provide it with working capital and allow it to move forward with its lease undertaking application for Barryroe, where it is pressing the Irish authorities (DECC) for consent.
In addition, some of the proceeds will be used to progress preparation for an appraisal well in 2023, subject to the award of the lease undertaking.