clickable links:

• Operations Summary PAD ZOOMABLE IRISH CONCESSIONS MAP Upstreamonline ARDMORE ► BARRYROE ► BURREN ► CAMA ► CUCHULAIN ► DRAGON ► DROMBEG ► DUNMORE ► DUNQUIN ► HELVICK ► HOOK HEAD ► KISH BANK ► NEMO ► NEWGRANGE ► ORPHEUS ► PEGASUS ► POLARIS ► SILVERBACK ► SPANISH POINT ► SPANISH POINT SOUTH ►

Providence Resources buys oil wells worth 45m

By Brian OMahony, Chief Business Correspondent
EXPLORATION company Providence Resources has bought oil producing wells the Gulf of Mexico from Triangle Oil and Gas at a cost of 45 million.


As a result Providences production will triple at a time when the price of oil has hit new records at more than $120 per barrel.

The deal is financed through Macquarie Bank and involved are interests in eight producing fields and two development sites.

Chief executive Tony OReilly Jnr said the move allows the company to grow its presence in the Gulf of Mexico while extending the production base within the group.



He said the move gave the group a springboard for future opportunities.

News of the deal pushed Providence shares up by more than 2% in Dublin.

The production is 1,300 BOEPD (barrels of oil equivalent per day) and the group is to issue 10m shares (in lieu of cash) and 30m share warrants at 12 cents to pay for the transaction.

Combined that represents a maximum dilution of 1.6%, assuming the warrants are exercised.

In return Providence will also receive cash of 3.6m when the acquisition is finalised.

British-based brokers Cenkos said Providence secured financing for the Triangle acquisition in this tight credit market, not noted for its merger and acquisition activities at present, which was partially due to the credit squeeze.

On an earnings basis, considering the depletion rates and assuming only 3 years proven developed production the acquisition should add about 68.5m or 2.7 cents per share to the asset value.

That does not take into account any proved but undeveloped reserves. If the company increased production, those figures would increase to 114m or 4.56 cents per share.

That increase is for Triangle alone and is on top of the existing portfolio which the brokers valued separately at 19 cents last May.

Providence is due to publish its 2007 results in mid May when the group is expected to give a further update on its activities including its various drilling activities offshore Ireland and elsewhere.

Nice TU today in advance of Thursday's update.

TU?

Tick up or rise?

Thanks Hermana, guess 2008 will be the year for PVR.

GUTTA,sure begiining to look that way......

seems like a good buy,would have prefered to find the oil through drilling though.Looking good for the next year or so with expected drills coming up.should be trading above 10p very soon with a bit of luck,thursday should be interesting.

Interesting indeed...............................

Everything looks good and they have so much lined up that even if one or two projects dont go through it will still be worth a punt!!!!

GUTTA,certainly worth a punt or two.

good volumes the last few days,but looks like private investors.

winner,some think Aje stake may be for sale.

worth north of $100m on valuation and deepwater prospects a nice earner for the company,wait and see thursday.

winner,could raise $125m according to some estimates. Chevron are the obvious buyer.

any ideas what would that be worth per share 5p?

winner,3p is my guess.

SHOWTIME today...................................

fingers crossed

not yet?

winner,we got results on 2005 and 2007 in the afternoon.