2011-04-08-2011-04-04-2011-04-04

Bought GOM portfolio consistiong of nonop 5% WI in High Island Block A-268 offshore Texas, gaining 700 BOE/d.

Houston-based, privately held Dynamic Offshore Resources LLC has acquired the U.S. Gulf of Mexico oil and gas portfolio of Providence Resources Plc, (London Aim: PVR) for $22 million.

The assets include a nonoperated 5% working interest in the High Island Block A-268 offshore Texas. Production is approximately 700 barrels of oil equivalent per day. A discovery well was drilled in early 2007, a second well was successfully drilled during August 2007 and the field was brought into production during second-quarter 2007. Recompletions are planned for 2011 in both the A1 and A2 wells.

Dynamic will pay $15 million cash up front with an additional $7 million to be paid dependent on Dynamic reaching certain production levels from any new wells drilled on Ship Shoal 252, 253 and 267 prior to January 2013.

Providence chief executive Tony O'Reilly says, "With our major multi-year, multi-basin drilling program offshore Ireland starting, combined with our ongoing investment program at Singleton, the investment focus for the company is now very clear. As such, the opportunity to realize cash from the Gulf of Mexico portfolio, and to deleverage the core business, made sense."

Providence plans to use proceeds to pay its reserve-backed lending facility with BNP Paribas.

CIBC World Markets Plc was financial adviser to Providence.