Providence says it plans to drill nine wells next year

Oil and gas group Providence Resources reported a positive year for 2007, and said it remained committed to its operations in Ireland.

The firm, which released a trading statement yesterday, is planning an extensive drilling programme during 2008, but the implementation of such a programme depends on the availability of rigs.

Chief executive of Providence, Tony O'Reilly jnr, said the firm was planning to drill up to nine wells across its portfolio next year, including a three-well programme at Hook Head as a follow-up to the drilling that was carried out this year which located a significant discovery of oil.

However, he said a shortage of off-shore rigs in particular could delay these plans, and as a result he could not confirm it to the market.

Some of Providence's projects are on-shore or have rig-sharing agreements in place.

The company highlighted the Hook Head project, the firm's continuing work on its west of Ireland prospects at Dunquin and Goban Spur and the ongoing farm-out process at its Spanish Point project as indicative of its commitment to the region.

During 2007, Providence had a number of successes, including two new gas wells producing in the Gulf of Mexico and a new farm-out agreement with Chevron and Vitol for AJE Field in Nigeria.

Providence recently agreed a new $250 million (€170 million) revolving credit facility with Macquarie Bank to help fund project development, and has cashflow from the Singleton oilfield, in which it has a majority stake.