O'Reilly's Providence moving forward with 'renewed optimism' after slashing losses
Irish oil and gas company Providence Resources is moving into the second half of the year with "renewed optimism" after clearing a host of corporate debt along with restructuring its balance sheet.
Over the last six months the firm, which is headed up by Tony O'Reilly, paid off the long-standing issue around its debt repayment to Melody as well as settling the outstanding litigation with Transocean. The firm also raised £53.7m through a share placing in July.
During the first half of the year the company nearly halved its loss on the same period last year. Providence posted a loss for the period of €4.44m, a significant improvement on the €8.42m loss it reported in the first half of 2015.
The company has since become debt free after paying $20m and allotting just under 10 million shares to Melody Business Finance.
“Providence enters the second half of the year with renewed optimism. A solid balance sheet and significantly enhanced financial strength, combined with the planned near term drilling activity at our Druid prospect have the potential to create significant shareholder value," Mr O'Reilly said.
The firm's crown jewel is its Barryroe oil prospect, which it is still trying to farm out. Mr O'Reilly said the improved availability of capital should increase its flexibility when it comes to negotiating over the prospect.