Providence set to raise €10m in quest for oil

TONY O’REILLY’S Providence Resources are looking to raise €10.15m through a rights issue.

The company will issue €338m new shares at three cents each in a bid to raise the cash to continue its exploration for oil off Irish coast.

Dr O’Reilly will take up his full rights, at the cost of €1m, and will own 45% of the company when the placing is completed.

Providence also said yesterday that it and partner Midmar Energy has signed a farm-in agreement with the Challenger Minerals and Palace Exploration for a license option on the Blackrock oil prospect.

Separately yesterday exploration firm Petroceltic said 2003 was a very good year for them with the company reporting a pre-tax profit $1.38m compared to a loss of $0.6m in 2002, even though turnover dropped. The profits were helped by the sale of some of its assets.

Its chairman Brian Cusack says 2004 will have plenty of potential for its projects in Tunisia and other areas of North Africa and is confident of adding new projects to its existing portfolio in the near future.