Providence announces 102% increase in profits

Irish exploration company Providence Resources has today announced a 102% increase in net profits, up to €83,000 from €41,000 in 2005.

Turnover at the company is up 61% to €1.014m, with operating profit up to €52,000, compared to 2005 losses of €15,000.

"So far, 2006 has been an exceptionally busy and positive period for Providence,” said Providence chief executive officer Tony O’Reilly Jnr.

“We have entered into long term strategic partnerships, announced major farm-out programmes, arranged acquisition and development financing, increased oil production and conducted major seismic programmes.

“Looking ahead, we see a continuation of this level of activity. Importantly, the securing of a rig slot will facilitate targeted drilling in 2007."

Earlier this week, the company announced an agreement with Island Oil & Gas Plc for the provision of the semi–submersible drilling unit ‘Petrolia’ in 2007, which Island had contracted for a 150-day drilling programme. Under the terms of an agreement, Island will assign one firm drilling slot to Providence in 2007.