Providence sells $16m Nigerian arm
Published 31/12/2011 | 05:00
IRISH exploration firm Providence Resources has completed the $16m (€12.3m) sale of its Nigerian subsidiary.
Australian firm Jacka Resources will pay an initial $10m for the business, which holds an interest in an offshore Nigerian exploration block called the Aje field. A further $6m will be paid by Jacka to Providence in April 2012. Providence said the proceeds would be used to reduce a portion of convertible bond debt.
Providence held a 5pc net revenue interest in the OML 113 block. It was involved in a partnership with Yinka Folawiyo Petroleum, Chevron, Vitol Exploration and Panoro Energy.
Four wells have been drilled so far at the Aje field, each of which produced hydrocarbon bearing results. The Aje field, which is located about 40km from Lagos, was discovered in 1996.
Chevron also recently moved to sell its stake in the OML 113 oil block.
Providence chief executive Tony O'Reilly has previously said the company hoped to bring oil ashore by 2013 from its Barryroe field in the Celtic Sea, where it's been recently engaged in drilling work.