2009 set to be headline year for Providence

RENEWED drilling activity in its operations in the Gulf of Mexico and planned new drilling rounds in its main British interest have led Providence Resources to talk up 2009 as potentially being a headline year for the company.

In its end-of-year trading update, the Irish oil and gas exploration company said that it will begin drilling at its X-10 well in its Singleton field in the south of England during the first quarter of 2009. In addition, the company said it will ramp up production in its wells in the Gulf of Mexico, which has been held up with various hurricanes and heavy weather hampering activity in the area in recent times.

The company also said that its AJE project in Nigeria should become a commercial producer of oil during the next 12 months. Nothing more, however, has been said by the company as to the possibility of selling its Nigerian assets.

“Providence Resources enters 2009 with a clear strategy, strong partners and an even more enhanced asset portfolio with a great deal of activity planned. Combined with the solid financial base of production cash flow and our existing credit facility, I am confident that Providence represents a strong investment proposition for shareholders,” said chief executive Tony O’Reilly Jnr.

“The discovery of gas at Galveston Island A-155, together with the acquisition of the Triangle oil and gas portfolio, substantially grew our reserve base and production levels in the Gulf of Mexico from our initial entry in 2007.”

Mr O’Reilly also commented that 2008 has been the company’s most successful year to date — in terms of areas such as project sanction, portfolio diversification and expansion of partnerships.