Exploration company Providence Resources is to raise just over €10m through the issue of 338 million new shares in the company at three cent per share.
The subscribers are mainly Irish and UK institutional shareholders, as well as Dr Tony O'Reilly, who is taking up €1m worth of new shares.
The proceeds will be used to fund Providence's share of the drilling of a test well at the Blackrock Prospect. The completion of the issue is subject to an EGM in late April.
Providence also intends to offer shareholders the chance to acquire new shares through a rights issue of one unit - comprising four ordinary shares and one warrant - for every 57 held. Dr O'Reilly has committed to take up his full entitlement. After completion, he will own 45% of the company. The rights issue will raise €3.2m.
Earlier, the company said it had entered into an agreement with Challenger Minerals and Palace Exploration Company to part fund the drilling of a test well in 2004 on the Blackrock prospect and fully fund of the costs of drilling a second well, if the 2004 test well encounters hydrocarbons.
Challenger and Palace would then have the right to earn a 50% interest in the project.
