Providence narrows losses

Revenue at Providence Resources rose more than 8 per cent and narrowed losses in the first six months of the year.

In a statement this morning the company said revenue was €11.3 million, a rise of 8.3 per cent compared to the first half of 2009.

It booked a loss of €1.2 million in the six months to June 30th 2010, compared with a loss of almost €6.6 million in 2009.

Providence Resources made a pretax profit of €43,000, compared to a loss of €5.5 million in the same period in 2009. Profit from operating activities was €2.086 million, a rise of 23.7 per cent.

Production rose by 19 per cent to 287,497 BOE over the six months. Production from Ship Shoal 253 in the Gulf of Mexico was reinstated in May 2010, and a two well drilling programme commenced at Singleton Field, onshore UK during the period.

Chief executive Tony O'Reilly said the first six months of 2010 had seen a huge amount of activity across its portfolio and a solid financial performance.

"Much of our portfolio is now maturing into the ready to drill phase. Working with our partners, we are now planning a coordinated and comprehensive drilling programme to test the hydrocarbon potential of many of the major basins offshore Ireland, consisting of both high impact exploration and appraisal/ development wells, over the next two years or so,” he said.

“The precise details of this programme should be finalised towards year end. In outline, we expect that this would be the largest concerted drilling programme in Providence's history and would also be the largest co-ordinated multi-basin drilling programme carried out offshore Ireland."