Providence Resources could begin drilling its first test well in its Celtic Sea interest as soon as this summer.

The company is raising €18 million to fund this and a number of other projects. The funding is due to be completed at the end of the month.

Providence has an interest in the Blackrock oil prospect off the Cork coast in the Celtic Sea. It plans to bring in two partners, Challenger Minerals and Palace Oil, to jointly fund this year's test drill.

This will entitle them to a 50 per cent holding in Providence's Blackrock interest. The Irish company will be left with 37.5 per cent, while its existing partner, Midmar, will retain 12.5 per cent.

Yesterday, Providence's biggest shareholder, Sir Anthony O'Reilly, revealed that he had changed a number of convertible bonds he held into ordinary shares, giving him a total holding of 805 million shares, or 52 per cent of the company. This month's share placing will cut that to 45 per cent.