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Providence revenues up, losses up

Friday, September 28 07:42:42

Exploration company Providence Resources has reported pre-tax losses of E29.73m for the six months to the end of June. This compared to a loss of E9.8m by the same time last year. The firm, which recently discovered oil in the Barryroe field off the Irish coast, said that losses from operating activities amounted to E27.8m. This is E24m higher than last year and came on the back of a E28.3m in impairment charges for UK onshore assets.

Revenues for the six month period increased by 35.5pc to E7.746m from E5.716m the same time last year. The company also said today that it plans to sell its onshore UK producing, development and exploration assets to a company called IGas Energy for $66m. Providence said that under the terms of the deal, IGas will buy its 100pc interest in the Singleton oil field, as well as its 50pc operated interest in the Baxter's Copse oil discovery and the Burton Down exploration prospect. The company said it will use the money from the deal to pay back its outstanding debts to Deutsche Bank, which amount to about $44m. The rest of the funds will be used for general working capital purposes.