Providence expects busy year ahead

PROVIDENCE Resources, the Dublin-based oil and gas exploration company headed up by Tony O’Reilly Jnr, has said that 2011 and beyond will see it conduct “significant activity“, including its largest drilling programme to date, off the coast of Ireland.

“This year has seen a huge amount of activity at Providence. We’ve assembled a balanced portfolio of drillable prospects, while also ensuring that we have the appropriate partners for these specific assets. Next year and beyond is all about drilling and we’re expecting significant activity in our three operational areas of the UK, the Gulf of Mexico and — most importantly — offshore Ireland, where we have multiple drilling targets,” said Mr O’Reilly.

On the back of Providence’s latest trading update, he said the company enters 2011 with “a clear strategy, strong partners, an increasing reserve base and a dynamic asset portfolio, which will be the subject of a comprehensive drilling programme.

“Combined with solid macro economic factors — commodity prices and exchange rates — existing cash resources, growing production cash flow and the ongoing support of our shareholders and bankers, we remain confident that Providence represents a compelling long-term investment proposition for investors,” he added.

He said that, over the next two years, the company will carry out “a comprehensive drilling programme” to test the hydrocarbon potential of some of the major basins offshore Ireland, consisting of both high impact exploration and appraisal/development wells.

In Britain, Providence is forecasting a doubling of production within the next two years at its Singleton well.

“The cumulative impact of our investments at Singleton and in the Gulf of Mexico should see production levels increase by nearly 50% from current levels by the end of 2011,” Mr O’Reilly added.