Ireland’s Providence Resources has confirmed it has received the final payment of US$6 million for the sale of its Nigerian interest, OML 113.
The payment marks the end of Providence’s asset portfolio restructuring, allowing it to focus on its core areas of offshore Ireland and onshore United Kingdom.
Providence divested its Nigerian subsidiary, which holds its interest in OML 113 offshore Nigeria, to Jacka for a total consideration of $16 million, $10 million of which was paid in December 2011, with the balance of $6 million to be paid in April 2012.
Commenting on the announcement, CEO of Providence Tony O’Reilly said: “With the proceeds from the recently announced $100 million placing, and production cash flow from our Singleton onshore oilfield, Providence will have a very clear capital structure with resources that allow it to finance its share of its ongoing multi-well, multi-basin drilling programme.”
Completion of the $100 million placing, which was announced on 2 April, is subject to shareholder approval at a general meeting being held later this month.
Providence’s portfolio of production, appraisal and exploration assets includes licence interests in Ireland (offshore) and the United Kingdom (onshore and offshore). In 2011, Providence, along with its partners, commenced a circa $500 million multi-year drilling programme on a number of exploration and development wells in six different basins offshore Ireland.
The programme represents the largest drilling campaign ever carried out offshore Ireland.
