Providence Resources lands $10 mln as Nigerian stake sales completes
Providence Resources(LON:PVR) has completed the sale of its Nigerian subsidiary for $16 million.The subsidiary owns Providence's 5 per cent stake in the OML 113 offshore licence.
The buyer, Jacka Resources (ASX:JKA), has now paid the first $10 million and a further $6 million payment is due by the end of April.Providence plans to use the sale proceeds to reduce its convertible bond debt.
The sale was agreed back in September.The OML 113 licence, which contains the Aje field, lies on the extreme western part of offshore Nigeria adjacent to the border of offshore Benin. The Benin Embayment lies along the prolific West African Transform Margin, a petroleum fairway which contains fields including the Tullow operated Jubilee Field offshore Ghana. Four wells have been drilled to date on the Aje Field, each of which were hydrocarbon-bearing, with three of the wells having logged significant net hydrocarbon-bearing sections.
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