Providence in ‘giant leap’ to oil commercialisation

Providence Resources has taken “a giant leap forward in advancing its plans to commercialise Ireland’s first oil field”, company chief executive Tony O’Reilly told company shareholders yesterday.

Providence Resources’ latest accounts published yesterday, for the year ended Dec 31, 2011, show the company reported revenue of €13.75m (2010: €11.080m), a loss before tax of €5.21m (2010: loss of €5.965m) and a retained loss of €13.9m after tax charges and write-downs related to discontinued operations.

Mr O’Reilly said 2011 was undoubtedly the most important year in the company’s history as it embarked on a $500m (€389m) oil drilling programme off-shore Ireland with its partners.

“It saw us commence our multi-basin, multi-year drilling campaign in Ireland — the biggest in the country’s history — and we were particularly delighted that Barryroe, the first well of the campaign, came in far above all the pre-drill expectations in Mar 2012.

“This not only demonstrated the significant scale of the Barryroe oil field, but it has also opened up many other opportunities in the Celtic Sea and has helped to redefine the industry view on the Irish offshore and its potential.

“The successful flow of high-quality light sweet crude at indicative commercial rates at Barryroe has enabled the company to take a giant leap forward in advancing its plans to commercialise Ireland’s first oil field,” he said.

Davy Stockbroker’s analyst Job Langbroek said the results contain very little new operational information and the financial performance does not reflect the fact that the group is for the most part an exploration business which generates value through the drill bit and oil and gas discovery.

“There was little new information in the results statement. It confirmed the high level of work under way on Barryroe and also the preparation for the two wells (Spanish Point and Dunquin) along the Atlantic margin in 2013. In all, the review indicated that at least five wells will be drilled before the end of 2013 and that the current Singleton well will be completed by the end of June. Providence is now the largest acreage holder offshore Ireland.”

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