Irish oil and gas exploration firm Providence Resources has announced details of a share placing which it hopes will raise $25.75 million for the company.

About 66.8 million ordinary shares, priced at 25p, will be placed as part of the agreement.

The placing is subject to shareholder approval at an emergency general meeting on March 20 in Dublin.

Providence said the money will be used to fund costs associated with the multi-well drilling programme of oil and gas projects and prospects, offshore Ireland and the United Kingdom, as well as costs arising from the litigation brought against the Company by Transocean Drilling UK arising from the drilling operations on the Barryroe well and the deferred payment for seismic activities carried out in 2014.

Proceeds are also earmarked to cover general and administrative costs, financing costs, sustaining capital expenditure and licence expenditure.

Providence chief executive Tony O’Reilly said the financial restructuring will allow the company to move forward with activities on its diverse asset portfolio including Barryroe and Spanish Point.

“Unfortunately, delays to certain planned events, combined with the forward working capital requirements of the business, necessitated raising capital at this time and at this price,” he said.

He added that the financing, if approved by shareholders, would broaden the company’s strong institutional shareholder base.

Investors in Providence, which is seeking finance to develop the Barryroe oil find off the Irish coast, have nursed heavy losses over the last 24 months.

Shortly after it announced its Barryroe find in 2012, it raised about £65 million at £4.80 per share.

Those investors are sitting on paper losses of more than 90 per cent.