Operating losses mount at Providence Resources

Operating losses at the Irish oil and gas exploration firm Providence Resources rose to €7.23 million for the 12 months to the end of December, compared to a loss of €5.4 million a year earlier.

The loss per share was 4.33 cents compared to a loss of 39.68 cents in 2012.

Providence, which is involved in the largest drilling programme ever undertaken offshore Ireland, said 2013 had been a busy year for the company “with plenty of activity across the portfolio of assets.”

The company’s $500 million Irish drilling programme covers a range of exploration and appraisal/development wells, spread across six different basins. Two wells, Barryroe and Dunquin , have already been completed and pre-drill operations and planning are underway for the remaining four wells to be drilled at Spanish Point, Dragon, Polaris and Kish Bank.

“Ireland’s offshore oil and gas sector is growing at the fastest pace in years. Providence’s leadership position, combined with the entry of an increasing number of new industry players, means that Ireland can now look to develop a meaningful oil and gas industry,” said chief executive Tony O’Reilly.

“It is notable that 2013/14 has seen the highest level of licence activity offshore Ireland and this obviously bodes well for the upcoming Atlantic Margin Licensing Round, which was announced earlier this month. Providence plans to be a major player in this upcoming licensing round,” he added.

Providence said it had €8.998 million in cash and cash equivalents.

Earlier this month the company entered into a $24 million general working capital facility with US-based Melody Business Finance.