Exploration group Ovoca Resources has reduced losses in the year to the end of February last. The company operates in mineral exploration and energy storage in Ireland.
The company recorded a pre-tax loss of €146,639 or 51 cents per share, down from €204,515 or 63 cents per share in the previous year. The company has cumulative losses of €5.28 million.
Ovoca has decided to abandon a mineral exploration project in north Galway after disappointing survey results. The programme was conducted under a joint venture with Amcorp Ireland and resources will be moved to the joint venture's other prospect in Cahir, Co Tipperary. Ovoca is also evaluating a site in Co Clare.
Ovoca is evaluating the suitability of a number of underground sites for the storage of compressed air to power electricity turbines, an area it sees as having considerable potential as power generators seek to reduce emissions. Since year end, Ovoca has formed a joint venture, Optimum Energy Ltd, with Mercury Holdings.
"Optimum Energy has identified the storage of electrical energy for use at peak times as a highly profitable and, as yet, undeveloped aspect of the electricity market in Ireland," said Mr Frank Buckley, Ovoca chief executive, in a statement.
The company intends to buy energy at off-peak prices and sell it back into the system at a premium during peak demand times.
The company proposes to power wind farms with the compressed air it plans to store. It says the main players in the Irish electricity industry have accepted the value of the project, run on the lines of existing operations in the US.
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