Thursday 18 January 2018

Providence Resources makes €3.8m operating loss, still in talks on Barryroe

OIL MAN: Providence Resources CEO Tony O’Reilly
OIL MAN: Providence Resources CEO Tony O’Reilly

Paul O'Donoghue

Operating losses at Providence Resources rose to €3.8m in the first half of the year as the company continued to look for a farm out partner for the Barryroe oil and gas field.

This compared to an operating loss of just over €3m in the six months to the end of June last year.

The full loss for the first half in 2015 came to €8.4m, up from €3.4m the year before while losses per share rose from 5.22 cents per share in 2014 to 7.94 cents.

Providence said that farm out discussions are continuing with a number of parties as the company attempts to secure a partner to help it develop the potentially lucrative Barryroe oil field.

Chief executive Tony O'Reilly said: "In addition to continuing the data room process for Barryroe, we also commenced the evaluation of recently acquired seismic data over a number of our key exploration prospects along the Atlantic Margin.

"Similar to other junior E&P companies, Providence has been impacted by the fall in oil prices which has led to a significant divergence between our market capitalisation and the underlying value of our substantial resource base."

He added: "Despite market turbulence, we have remained focused on our core Irish-centric strategy and, with the continued support of our existing shareholders and new institutional investors following our successful fundraising in the first quarter, we continue to prudently invest across our portfolio."

He also said that the firm is in talks to extend its current debt facility, saying: "Discussions are ongoing with Melody Finance LLC, the company's debt provider, regarding the possible extension of the terms and maturity of the facility.

"In addition, the board has initiated a cost reduction programme in order to remove any and all non-essential costs from the business which will deliver meaningful savings going forward."

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