Providence divests $66m of oil fields

City A.M. Reporter
Ireland-focused Providence Resources has divested $66m (£40m) of exploration and production assets to AIM-listed IGas Energy, as it reported a jump in first half losses.

Providence, headed up by Tony O’Reilly, is selling its onshore UK licence interests for oil fields in West Sussex.

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

The Dublin-based company hiked its estimate of oil reserves at Barryroe, off the Cork coast in July, to as much as 1.6bn barrels and noted there was further potential in hydrocarbon-bearing sands.

Meanwhile, Providence reported increased pre-tax losses of €29.7m, down from €9.83m over the first half of 2011, because of mechanical issues at a well at Singleton in June.

Revenue was up 35.5 per cent to €7.74m.