Thursday 21 September 2017

Providence sells onshore UK operations for $66m

IRISH oil and gas explorer Providence Resources has confirmed that it had sold its onshore UK licence interests to IGas Energy for $66m (€50.3m).

The deal was first made public in September when the company announced losses linked to mechanical issues at a well at Singleton, West Sussex, in June.

The company said that the sale of the interests in two licences in West Sussex will enable it to become debt-free and let it concentrate on Barryroe, Ireland's biggest ever oil strike.

"We are very pleased to have closed this transaction, which means that the company is now totally debt free.

"We will now continue to concentrate on our extensive Irish portfolio of appraisal projects and exploration prospects, which are the subject of a major multi-basin drilling programme," chief executive Tony O'Reilly said yesterday.

Providence has declined to comment on reports last month that giant Malaysian oil firm Petronas is mulling a €600m bid.

Petronas, which is a partner of Providence in its now shelved Dalkey Bay field, already has a presence in Ireland through its acquisition of Kinsale Gas in 2009. Petronas has also agreed a deal with tiny Fasnet off Kinsale.

The 'Sunday Independent' has reported that Providence prepared a data room and costings on Barryroe for potential investors. Providence said it did not comment on speculation.

Irish Independent

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