Providence Resources raises €270,000 to help fund Barryroe development

Providence recently said it could realise a further €23.5m in funding if all remaining warrants from April’s share sale are exercised. Picture: Finbarr O'Rourke 

Irish exploration company Providence Resources has raised a further £245,450 (€271,000) to help fund the development of its flagship Barryroe oil and gas field off the Cork coast.

The new money comes via investors exercising warrants that were issued as part of Providence’s €3m emergency fundraising in April. It follows a similar warrant exercising move, last month, which raised an additional €540,000.

Providence recently said it could realise a further €23.5m in funding if all remaining warrants from April’s share sale are exercised.

The company last month posted a €9.2m loss for the first half of 2020, up from a loss of €5.5m for the same period last year.

However, a heavy round of cost-cutting moves earlier this year helped reduce its first half operating losses by over €4m. Providence is now fully-funded up to July of next year, at least, with management saying there is no need to tap shareholders for more funds.

Alan Linn, Chief executive, has said the company is now aiming to fast-track production at Barryroe, saying the field needs to be brought to production stage as early as possible.

Providence’s already agreed Barryroe farm-out deal — which will see a consortium including Norwegian company SpotOn Energy and oilfield services giant Schlumberger buy control of and develop the project — should be formally completed by the end of this month.