Providence Resources has confirmed the sale of its Nigerian subsidiary in a deal worth up to $16 million. The London- and Dublin-listed oil and gas exploration and production company said yesterday that it had sold its Nigerian subsidiary, which holds its interest in OML 113 offshore Nigeria, to Jacka Resources Limited.

Under the terms of the transaction, the consideration payable by Jacka is $16 million, $10 million of which was paid at closing.

The balance of $6 million is payable by April 30th next. The proceeds of the transaction will be used to reduce a portion of the company’s convertible bond debt.

Providence announced its intention to sell its Nigerian interests at the same time that it published accounts showing that it lost close to €10 million in the first six months of this year.