Irish exploration group Providence Resources has reduced its operating loss, which fell to €21,000 in the first six months of the year compared to €56,000 for the same period in 2002. Edward Power reports.

With turnover up to €385,000 from €351,000 in the first half of last year, gross profit climbed to €216,000 against €119,000 in the previous year.

Loss on ordinary activities after tax was €157,000 , due primarily to a non-cash interest charge arising on convertible capital bonds of €129,000, compared with a €321,000 loss for the first half of 2002.

The group has accumulated losses of €24.3 million.

Revenues were generated from the group's 20 per cent holding in the British onshore Singleton oil field. Its stake averaged 81 barrels per day at an average oil price of $29.10 per barrel.

Providence said it was optimistic about its 50 per cent holding in the Blackrock prospect, located 35 km south of the Marathon-operated Kinsale Head gas field.

Field analysis suggested the prospect contained an unrisked potential recoverable value of up to 613 million barrels of oil, it said in a statement.

It was also upbeat about gas field interests in the North Celtic Sea Base, off Ardmore in Waterford, and about a 45 per cent interest acquired in an oil block in the North Sea off the British coast.

Dr Brian Hillary, chair of Providence, said: "Providence has now assembled a very strong portfolio of interests, focused in the Celtic Sea and surrounding areas where the Irish Government's recent initiative on licensing options is already resulting in a rejuvenation of industry interest."

The consolidated balance sheet shows the group has called- up share capital of €12.75 million, against €10.77 million in the same period 2002. The group's net assets were worth €4.8 million, down from €4.79 million.