Providence Resources P.l.c., the London (AIM) and Dublin (ESM) listed oil and gas exploration and production company, has confirmed that it has received the final US$ 6 million tranche payment from Jacka Resources Limited, an ASX-listed company, for the sale of its Nigerian interest, OML 113 which includes the Aje oil and gas field.
Under the terms of this previously announced transaction, Providence divested its Nigerian subsidiary, which holds its interest in OML 113 offshore Nigeria, to Jacka for the total consideration of US$ 16 million, US$ 10 million of which was paid in December 2011, with the balance of US$ 6 million to be paid in April 2012.
Commenting on the announcement, Mr Tony O’Reilly, CEO of Providence said:
“This divestment completes the restructuring of our asset portfolio and allows us to focus on our core areas of offshore Ireland and onshore United Kingdom. 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.”
Source: Providence Resources P.l.c. April 12, 2012