Providence profits rise on increased production

Irish oil and natural-gas explorer Providence Resources has reported a 12-fold increase in revenues for the six months to the end of June.

Turnover increased 1,200 per cent to €11.24 million with a profit from operating activities of €4.98 million. This compares to a loss of €140,000 during the same period in 2007.

Providence said production has increased to 2,000 barrels of oil equivalent a day (BOEPD), compared with 120 BOEPD over the same period last year. By the end of 2010 the company said it plans to be producing 5,000 BOEPD.

The company said overall assets had trebled to €130 million. Providence also reported diluted earnings per share of 0.13 cent.

Drilling operations off the Irish coast at Dunmore and Hook Head were "disappointing" the company said, and in the latter the well has been capped to avoid further costs.

Providence said it was analysing data from a new carbonate reservoir found in the Dunmore block.

Results from the Celtic Sea drilling programme were awaited, the company said, adding that it hoped to be in a position to update shortly on progress in the Porcupine Basin.

At 10.25am, Providence  shares were trading up 12 per cent at €.56, giving the company a market capitalisation of €138 million.