Tuesday 12 December 2017

Providence drilling plans on track for 2015

Providence at work at Barryroe
Providence at work at Barryroe
Sarah Stack

Sarah Stack

Oil and gas exploration firm Providence Resources said its operating loss was more than €3m in the first six months of the year.

The Dublin and London listed firm vowed to identify and realise the potential that exists offshore Ireland.

Tony O’Reilly, chief executive, said the Barryroe farm out remains a main priority.

“Negotiations are now at an advanced stage and we are working hard to satisfactorily conclude this with the objective to return cash to the business and obtain capital funding, whilst also ensuring that Providence retains a material stake in Barryroe, with a clearly defined road map for the timely drilling  and development of the field,” he said.

Interim results for the six months to June 30th showed an operating loss of €3.016m, compared to a loss of €3.335m during the first half of last year.

A net loss of €3.374m compared to a profit of €1.328m last year, which had included €4.97m profit from the sale of the UK onshore operations.

Providence said it has also secured two loan facilities totaling US$ 24m with US financial provider Melody Business Finance.

Mr O’Reilly said the Atlantic margin area remains a key focus area for the company while drilling plans for 2015 are also advancing well, including at Spanish Point partners and the Rathlin Basin.

“Our shallow water, high potential, Kish Bank oil prospect, offshore Dublin, is technically drill-ready and we are continuing to pursue the required consents to proceed with operations on this exciting prospect,” he added.

“We have discussed a phased development approach of the Dragon gas field with both UK and Irish regulators and are currently carrying out 3D PSDM seismic reprocessing to pave the way for the future drilling and ultimate development of the field.

“A separate piece of work is also being carried out on the evaluation of the DICE (Dragon Interconnector) system, where we are looking at the feasibility of a new south east utility interconnector between Ireland and the United Kingdom.”

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