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Providence Resources shares fall as losses total €24m


Published 09/05/2013

Drilling: Supermajor Exxon
Drilling: Supermajor Exxon

Shares in Providence Resources have risen after the company posted a loss for the year but looked forward to production at its exploration licences around Ireland.

For 2012, the company saw losses almost double to €24m (£20m) from €13m (£11m) in 2011.

That will be of little consequence however if Providence can pull off production at any of its licences around Ireland.

The company claims to have found almost 1.5bn barrels of oil at Barryore off the south coast, while it is a partner in the Dunquin site in the Atlantic, which is being drilled by the supermajor Exxon this month.

Company chief executive Tony O'Reilly said 2012 had been a "landmark" year for the company.

"We completed operations on the first well in the company's multi-well, multi-year drilling programme offshore Ireland at Barryroe.

"This $500m, six well programme is the largest and most comprehensive drilling programme undertaken offshore Ireland, involving Providence and its partners in a number of exploration and development/ appraisal wells across six different basins offshore Ireland.

"This first of six wells (at Barryroe) has far exceeded expectations. Drilling of the second well, the Dunquin exploration well in the Porcupine Basin, off the west coast of Ireland, commenced in April 2013 and plans are now in place for a further appraisal well to be drilled on the Spanish Point gas condensate field in Q2 2014, following the just announced farm-in deal by Cairn Energy," he added.

Giant Malaysian oil firm Petronas was thought to be mulling over a possible bid for Providence Resources earlier this year.

Petronas, which is a partner of Providence in its now shelved Dalkey Bay asset, already has a presence in Ireland through its acquisition of Kinsale Gas in 2009.

Belfast Telegraph

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