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Losses mount at O'Reilly's Providence Resources

The company blamed increased losses on administration expenses.

Image: Danny Lawson

OIL & GAS PROSPECTOR Providence Resources has posted a loss of €7.2 million for 2013, accounts filed for the company today show.

Losses at the company, which is engaged in exploratory drilling in Irish waters, have climbed from €5.4 million in 2012. Providence blamed higher administration expenses linked to an increased level of activity across its portfolio.

The publicly quoted company has completed two wells at Barryroe and Dunquin, and is engaged in pre-drill operations and planning at Spanish Point, Dragon, Polaris and Kish Bank.

On its forward work programme, chief executive Tony O’Reilly – son of Sir Anthony O’Reilly – said:

“In addition to work on Barryroe, activity continued on the preparatory work for the remaining four wells in our multi-basin drilling programme.”

“The next planned drilling activity is the Spanish Point appraisal well…this is to be followed by a gas appraisal and development well at Dragon, and subsequently, oil exploration wells at Polaris and Kish Bank.”

Growth in Irish sector

O’Reilly went on to say that the offshore oil and gas sector is growing at the fastest pace in years.

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“Ireland can now look to develop a meaningful oil and gas industry.”

Commenting on last month’s announcement of increased tax rates for the oil and gas industry in Ireland when finds occur, O’Reilly said:

“The clarity and certainty that now exists in relation to Ireland’s fiscal terms will make it easier for international companies to participate in (an) upcoming licensing round.”

We welcome the Irish government’s decision that the fiscal terms will not be changed for existing licenses.

Read: Ireland will receive more taxes from oil and gas exploration under new terms>

Read: European gas shortage looms after Russia cuts Ukraine’s gas>

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Jack Horgan-Jones

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