Providence raising funds for Irish wells

Providence Resources’ board has agreed terms for raising $65.7 million via a conditional share placement.

Offshore staff

DUBLIN, Ireland -- Providence Resources’ board has agreed terms for raising $65.7 million via a conditional share placement.

The proceeds will be directed largely at a multi-well campaign on prospects close to proven oil and gas discoveries offshore Ireland and onshore UK. Some of the capital will also be set aside for seismic studies on some of the company’s “early stage” assets to assess their suitability for drilling at a later date.

Over the past few years Providence has assembled an acreage position offshore Ireland comprising existing discoveries and oil and gas exploration assets.

The company believes that following recent advances in technology, infrastructure, and commodity pricing, the time has arrived to test the commercial potential of some of these assets.

The proposed multi-year, multi-well drilling campaign will cover six basins – Providence aims to drill up to 10 wells from now through 2013. Priorities include the Barryroe and Hook Head discoveries in the Celtic Sea basin off southern Ireland

Tony O'Reilly, Chief Executive of Providence said: "The planned drilling program not only represents the largest drilling program in our history, but it will also be the largest co-ordinated multi-basin drilling program ever carried out offshore Ireland.

“The proceeds of the Placing will enable us to retain a meaningful interest in these assets and will allow us to test the hydrocarbon potential of some of the major basins offshore Ireland, consisting of both high impact exploration and appraisal/development wells”

02/21/2011

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