John Teeling has said exploration firm Petrel Resources, of which he is chairman, has ample resources to weather the current challenging market conditions produced by the low oil price environment.
He said yesterday that Petrel anticipates early discussions with the Irish authorities surrounding the three-acreage packages applied for in this month’s licensing round and is “hopeful of success” in being awarded new licences.
“The immediate future for Petrel [which also holds assets in Ghana and Iraq] is tied to offshore Ireland,” said Mr Teeling.
“We are hopeful of obtaining additional acreage in the recent Irish Atlantic licensing round. There will be developments in Ghana in the coming months but, based on experience, it is very difficult to predict.
"Overriding all of the above is the price of oil. Should it stay weak, or even fall further, then exploration will fade away, only to return stronger when prices rise. Petrel has the resources to operate through this cycle,” he added.
Mr Teeling was speaking on the back of the publication of Petrel’s latest set of half-year figures, which saw the firm slash its losses.
The AIM-listed company reported an overall loss of £147,000 (€200,000) for the first six months of this year, down from £228,000 for the corresponding period last year.
Losses per share, for the six months, were down from 23p to 15p on a year-on-year basis. Mr Teeling said Petrel’s current plans are funded through to 2017.
Earlier this year, the company suggested a possible timeline of around 2018 for drilling at its existing Irish licences ( located off the west coast and held in partnership with Australian firm, Woodside Energy) depending on the results of seismic surveying.
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