Providence to focus on Irish portfolio as it sells Gulf assets

PROVIDENCE Resources has underlined its intended future reliance on its Irish exploration portfolio by selling its entire US operations for a maximum consideration of $22 million (€15.6m).

The Dublin-headquartered oil and gas exploration company — which is headed up by Tony O’Reilly Jnr — will receive an initial cash payment of $15m from Houston-based company Dynamic Offshore Resources, for the nine-well asset located in the Gulf of Mexico. The consideration will be boosted by a further $7m depending on Dynamic being able to reach certain agreed production levels from any new wells drilled on three blocks in the Gulf before January 2013.

The proceeds raised from the sale will chiefly go towards lowering the company’s loan from BNP Paribas. Providence’s Gulf of Mexico portfolio currently has a combined production level of around 700 barrels of oil equivalent per day (boepd).