Providence to Focus on Ireland after UK Asset Sale
Irish explorer Providence Resources announced Friday that it plans to sell its onshore UK interests for $66 million to IGas Energy.
The transaction will wipe out the company's debt and free it to focus on the completion of its multi-basin drilling campaign in Ireland. Providence has already scored a significant success this year with its Barryroe discovery in the Celtic Sea off the south coast of Ireland, where a potential 1.6 billion barrels of oil has been found.
Under the terms of the agreement, IGas will acquire Providence's 100-percent interest in the Singleton oil field, which is located on UK license PL240 as well as the Irish firm's 50-percent operated interest in Petroleum Exploration and Development Licence 233. Both of these licenses are located onshore in West Sussex, England.
Providence also reported interim results Friday, which showed a first-half net loss of $43 million (1H 2011: $4.1 million), which included a $36.5 million impairment charge for its UK onshore assets. Production during the first six months of the year averaged 541 barrels of oil per day.
Oil sector analysts at London-based investment bank Cenkos Securities noted that the proposed sale of the UK assets "will allow management to focus on realizing the value in its core portfolio".
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
More from this Author
Most Popular Articles
From the Career Center
Jobs that may interest you