Providence Enters €50 Million Finance Facility
Providence Resources has agreed to a 50 million revolving credit facility with Macquarie Bank Limited. It is intended that the facility be used to fund the acquisition of new production and/or the development of both existing and new projects. The facility will have an initial duration of 48 months
Under the terms of the facility, 5 million will be made available to fund general working capital and development opportunities. The balance will be made available to Providence, subject to the terms of the facility, to fund oil and gas acquisitions, investments and development opportunities.
As part of the agreement, the Company has agreed to grant Macquarie warrants to purchase new ordinary shares in Providence at a subscription price of 0.045 per share. The number of warrants to be issued is linked to the funds available for drawdown under the facility, with an initial 35 million warrants to be granted in connection with the initial drawdown and a maximum of an aggregate 100 million warrants to be granted if the full 50 million facility becomes available for drawdown.
Tony O'Reilly Junior, Chief Executive of Providence Resources, commented:
"This facility is great news for Providence. It will allow us to move quickly on opportunities, thereby accelerating our plans to increase our daily oil production rates. Macquarie is a natural resources specialist with a proven track record in advising companies in the oil and gas business. We are very pleased that we have secured this flexible credit facility to help fund our stated strategy for growth."
Providence Resources Plc is an independent oil and gas exploration company listed on the AIM market in London and on Dublin's IEX market. The Company was founded in 1997, but with roots going back to 1981 when it predecessor company, Atlantic Resources Plc was formed by a group of investors led by Sir Anthony O'Reilly.
Providence's active oil and gas portfolio includes interests in Ireland
(offshore), the UK (onshore and offshore) and West Africa (offshore
Nigeria). Providence's portfolio is balanced between production,
appraisal and exploration assets, as well as being diversified
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