Providence seeking funds to maintain offshore Ireland operations
DUBLIN, Ireland – Providence Resources is seeking to raise around $3.76 million via a share placement.
The company needs the funds due to continued delays in the receipt of a $9-million loan from Chinese partner APEC Energy Enterprises for a proposed development in the North Celtic Sea offshore southern Ireland.
Providence has warned that if the placing fails, its ability to continue as a going concern will be compromised.
This would jeopardize completion of the Barryroe site survey, which started last week (in preparation for a proposed well), also preventing the company for fulfilling work commitments on its various licenses offshore Ireland.
CEO Tony O’Reilly, commenting in the company’s latest results statement, said the past nine months had been a difficult period as Providence has tried to respond to Ireland’s Climate Emergency Measures Bill.
Although the bill is currently in a legislative ‘limbo,’ it has already caused significant damage to sentiment and investment interest in offshore Ireland, he said.
“Providence, like all operators offshore Ireland, believe that there needs to be a well thought through plan of action on climate related matters whilst also ensuring that Ireland continues to have its own source of indigenous oil and gas supply in order to avoid the increased risk of any energy supply shocks as a result of Ireland becoming even more reliant on imported oil and gas from places like Russia and the Middle East.”
Offshore western Ireland, the company has relinquished its Newgrange, Goban Spur (FEL 6/14) license.