Irish exploration group Providence Resources saw its first-half profit more than double, boosted by the higher oil price and an increase in production.
The London and Dublin-listed company yesterday revealed net profit of €83,000 in the six months to the end of June, up from €41,000 in the same period a year ago. Revenue was up 61 per cent, at slightly more than €1 million. The income came from the company's 20 per cent share in the UK Singleton oilfield with the majority of the gains being generated by the higher oil price.
During the period, Providence's share in the field produced an average of 105 barrels of oil a day at an average price of $65.69 (€51.75) per barrel. This compares with 89 barrels at an average price of $49.58 last year.
Chief executive Tony O'Reilly Jnr welcomed the positive figures, but said the highlight of the period had been the progress made on a range of developments, including the securing of a rig for drilling in the Celtic Sea next year. Mr O'Reilly said a shortage of drilling equipment has in the past held the company back, although he believes this issue may now be resolved.
Providence is seeking to increase its daily output through production increases at the Singleton site as well as the acquisition of new assets. Mr O'Reilly said the company, which has a €50 million facility set aside to fund expansion, is currently assessing the potential of several different prospects.
