Providence drillings ‘have huge potential’

PROVIDENCE Resources, the exploration firm backed by the O’Reilly family, says it is working on a number of exciting oil and gas projects.

Chief executive Tony O’Reilly Jnr yesterday said the company was working on a number of drilling operations with major potential.

He said Providence’s stake in the Aje oil field in Nigeria could be “transformative” for the company. Providence’s partners were currently drilling the Aje field, and while the details of the testing were not finalised, it is a “world class play” for the company.

Mr O’Reilly said production from its Singleton oil field in England would also increase, providing an “attractive bit of cash” for company as it worked on larger projects.

The company has a number of exploration licences for oil and gas fields in the Irish Sea.

Off the Wexford coast it has 80% shares in two fields with a potential combined gas find of 1.5 billion cubic feet of gas and is in talks to develop these fields with a number of large exploration companies.

Providence yesterday reported that first-half operating profits had risen from €113,000 to €265,000. Turnover at the company, which is listed on the Dublin and London stock markets, increased from €510,000 to €629,000.

Mr O’Reilly said the rise in profits and turnover was due to higher oil prices. Productions from the Singleton field was average 89 barrels per day.

Providence said it will be able to fund its exploration projects from the €4.55 million in cash on its books and from the proceeds of its recent listing on the London market, which raised a further €3m.

Shares in the company were trading 3.3% higher yesterday.