Business Irish

Monday 22 September 2014

Providence Resources post loss of €7.2m in 2013

Ailish O'Hora

Published 27/06/2014 | 07:49

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Dr Brian Hillery (chairman) and Tony O'Reilly (chief executive)
Dr Brian Hillery (chairman) and Tony O'Reilly (chief executive)

EXPLORATION firm Providence Resources has posted an operating loss of €7.2m in 2013, up from €5.4m the previous year.

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The company said the increase was due to higher administration expenses related to a higher level of activity across its portfolio.

The loss for the year attributable to equity holders was reduced to €2.8m, with a net credit of €4.9m 2013 attributed to the profit from the sale of the UK onshore operations (net of income tax).

The loss per share was 4.33 cents compared to a loss of 39.68 cents in 2012 while this month, the Company entered into a US$24m general working capital facility with Melody Business Finance, a US based financial provider.

“2013 has been a very busy year for the Company with plenty of activity across the portfolio of assets,” said chief executive Tony O’Reilly.

“Following the Company’s drilling success at Barryroe in 2012, the Company’s main focus has been on the commissioning of a third party resource audit, its publication and conducting a farm-out process. Through this process, we are working to affiliate with an appropriate strategic partner to take the field through detailed appraisal and, ultimately, into production.

“Overall, the farm out and mergers and acquisitions market in the oil and gas sector remains challenging, with caution evident across the sector. The majority of world-wide oil and gas investments and M&A deals have been concluded either in the North American shale gas and oil sector or in the East African region with very few major farm out deals being completed in the North-West European sector over the past year."

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