PETROCELTIC, the Irish based exploration company, will know in April whether a plan to develop an extension to the Kinsale Head gasfield has been approved by the Department of Energy.
If the project gets the go ahead it will boost the company's income as it is expected to come on stream next year.
Petroceltic, which yesterday announced pre tax losses of £6,550 in the six months to September last, compared to a loss of £10,043 for the same period the previous year, said the project was an important one.
Petroceltic took part in the project, known as the Southwest Lobe of Kinsale, through the Marathon Royalty.
In a statement yesterday the company's chairman, Mr Ray French, said production from Kinsale and Ballycotton was proceeding very satisfactorily, with last month's gas output exceeding 310 million cubic feet a day, "which is at record levels, demonstrating the proficiency of the Kinsale reservoir system".
Mr French said he was confident that, with the development of the Southwest Lobe and the new gas sales agreement announced by Marathon and Bord Gais last year, these fields will be producing well into the next century, "thus providing solid cash flow".
Commenting on the results, Mr French said the company still had cash resources of almost £1.2 million and, even after allowing for long term indebtedness of £700,000, the company is financially well placed to undertake a number of new projects.
Royalty income was £184,696 compared to £181,614 for the same period the previous year, while net royalty income was £97,696 compared to £91,614 previously. The loss per share was 41p compared to 53p the previous year.
