On April 6, the company could confirm that the fundraising had been completed as the company has, conditionally, secured GBP 2.7 million, which is equivalent to approximately USD 3.3 million.
Providence has completed a re-engineering of its business and has materially reduced its running costs. In addition, a review of the company’s exploration portfolio is complete and expected to result in additional licence and work programme cost reductions through 2020.
In September 2019, a capital raising provided working capital only in respect of general, administrative and licence operating costs until the beginning of February 2020.
In February, the company announced that they had an urgent need for additional working capital “in order to allow it to continue as a going concern beyond this date and to allow it to continue the Barryroe farm out process with SpotOn Energy”.
Providence informed its shareholders at the time that, if the fundraising was unsuccessful, the company’s ability to continue as a going concern beyond mid-May 2020 would be materially compromised and the outcome of the Barryroe farm out process will be negatively impacted.
This new USD 3.3m fundraising is to be in place early May 2020.
Mandy Johnston, CEO of the Irish Offshore Operators Association, commented on her LinkedIn account on April 6, that this is “good news for Ireland’s energy transition journey as we search for local supply to avoid total dependency on imports.”