Providence Resources Plc has announced the placing of convertible bonds with institutional investors to raise $42 million before expenses. The funds raised from the Bonds issue will be used to fund the upcoming drilling in the Company's Celtic Sea Projects, where Providence has taken delivery of the rig, and to fund
No application has been made for the Bonds to be listed or traded on any stock or investment exchange. Application is, however, expected to be made for the Bonds to be listed on a stock exchange within the
The Bonds, denominated in units of $100,000 each, carry interest of 12% per annum, payable semi-annually in arrears, and mature on July 29, 2012, at which time all outstanding Bonds will be redeemed, on the basis of repayment of the principal value of the Bonds, plus all accrued and unpaid interest. At the election of the holder of a Bond, the Bonds are convertible into ordinary shares of nominal value 0.001 each in the Company ('Ordinary Shares') at a conversion price of 0.10 per Ordinary Share at any time on or after September 29,
Providence also announced that, together with its partners, they have taken delivery of the GSF Arctic II semisubmersible drilling rig in anticipation of its upcoming multi-well appraisal drilling program at the Hook Head and Dunmore oil accumulations in the north Celtic Sea, offshore Ireland.
The Arctic II came under contract over the weekend and the rig is currently being mobilised to Irish waters. Providence and its partners have contracted the Arctic II for a 2 firm well, plus 1 contingent well program. Drilling is expected to commence within the next 2 weeks. A further announcement regarding this drilling program will be made in due course.
Tony O'Reilly, Chief Executive of Providence Resources, commented, "We are very pleased to have successfully completed the placing of this convertible bond which will facilitate the ongoing development of the Company. In particular, the proceeds of this issue will allow the Company to pursue its Celtic Sea drilling program this summer as well as giving the Company flexibility to invest in new opportunities in the Gulf of Mexico. We are particularly satisfied, given the current volatility of the equity and debt markets, to have successfully completed this financing. I look forward to updating shareholders on the progress of our drilling program."
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