Providence Resources, the exploration firm in which Sir Anthony O'Reilly has a 45.4 per cent stake, has posted pre-tax profits of €12,000 for the first six months of the year. Una McCaffrey reports.

The performance compares to a loss of €157,000 recorded for the same period of 2003. Providence attributed the turnaround to its onshore Singleton Oil Field in the UK. The firm has a 20 per cent interest in the field, from which it drew a production share of 102 barrels of oil per day over the first half at an average price of $33.70 per barrel.

In the first half of 2003, this production share amounted to 81 barrels per day at an average price of $29.10 per barrel.

This uptick delivered turnover of €510,000 and lifted operating profits to €113,000, compared to a loss of €21,000 in the same period of last year. An interest charge of €131,000 combined with interest receipts of €30,000 to produce the pre-tax result of €12,000.

Providence chairman Dr Brian Hillery said 2004 had so far been "an extremely busy and exciting period" for the company.

He said activities had been supported by the generally favourable environment for oil and gas companies and pointed to a "positive outlook" for Providence.

The upbeat statement did little for Providence's share price, which has been hovering around two cents for about two months and closed a touch weaker last night.

The firm's shares were halved in late August when drilling results from its Blackrock Prospect in the Celtic Sea proved inconclusive. Dr Hillery said yesterday that Providence was continuing to evaluate prospects for the Blackrock interest. He said the prospect may in the future form part of a larger offshore drilling programme.

"The prospect continues to be very significant with unrisked potential to contain several hundred million barrels of oil," Dr Hillery said. Providence has a 41.5 per cent interest in the block.