27th Jun 2014 11:03
LONDON (Alliance News) - Providence Resources PLC Friday said it managed to narrow its losses in 2013 thanks to lower finance expenses, but its operating loss increased as it picked-up the level of activity across its portfolio.
The Irish oil and gas exploration and appraisal company said it continued to focus on progressing the multi-well drilling programme offshore Ireland in 2013, and planning is underway for the remaining four wells to be drilled at Spanish Point, Dragon, Polaris and Kish Bank.
Providence Resources recorded a pretax loss of EUR7.8 million for 2013, compared with a EUR8.2 million pretax loss in 2012, on the back of lower finance expenses in the year.
However the company's operating loss increased as a result of higher administration expenses directly related to an increased level of activity across its portfolio.
"In addition to work on Barryroe, activity continued on the preparatory work for the remaining four wells in our multi-basin drilling programme. The next planned drilling activity is the Spanish Point appraisal well, operated by Cairn, which is targeting up to 200 million barrels of oil equivalent recoverable resources. This is to be followed by a gas appraisal and development well at Dragon and, subsequently, oil exploration wells at Polaris and Kish Bank," the company said.
Providence Resources said it is still in negotiations with a number of parties regarding the phased development programme for Barryroe oil field and the launch of the industry-wide farm out campaign. The Barryroe site is located in the North Celtic Sea Basin, offshore Ireland.
"Overall, the farm out and M&A [merger and acquisitions] market in the oil and gas sector remains challenging, with caution evident across the sector... Looking ahead, we are optimistic for the prospects for the Irish oil and gas sector," said Chief Executive Tony O'Reilly in a statement.
Earlier this month the company entered into a USD24 million general working capital facility with Melody Business Finance LLC, a US-based financial provider.
Providence Resources shares were down 2.6% at 137.80 pence before midday Friday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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