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Providence Resources PLC on Friday said it intends to raise up to $1.8 million through a placing and subscription.
Providence Resources is a Dublin, Ireland-based energy company, which operates Barryroe oil & gas projects. Barryroe is an offshore oil and gas field in the Atlantic ocean.
The fundraising, which will be conducted through an accelerated book build process, involves a placing to institutional & other investors and a subscription by certain investors.
The company said that both the placing and subscription will comprise of one new share at a price of 1.5p each and one 1.5p warrant.
The issue price represents a discount of 35% to the closing price of 2.3p on Thursday. Shares in Providence Resources were untraded at 2.30 pence each in London on Friday midday.
The book build will be open with immediate effect, the company added.
Providence Resources explained that the fundraising is required to address the company's near-term working capital requirements as well as to pursue its lease undertaking application for Barryroe.
It added that some of the proceeds will be used to progress preparation for an appraisal well in 2023, subject to award of the lease undertaking.
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