The board of Providence Resources plc is anticipating further capital expenditure savings next year, following a cost reduction program in 2015 that has seen the company’s CAPEX almost halve.
Providence’s CAPEX is now forecasted to reduce by around 40 percent in 2015, compared to 2014 levels, and its G&A costs are expected to decrease by 12 percent this year. Further G&A cost reductions are also planned for 2016, according to a company statement.
Tony O'Reilly, chief executive of Providence, commented in a company statement:
“In view of the challenging global industry environment, the board continuously reviews the company’s capital structure and cost base to ensure it is appropriate to support its operations.
“During 2015, the board…initiated a cost reduction program in order to remove non-essential costs from the business which will deliver meaningful savings going forward.”
Earlier this month, Providence Resources agreed to increase its equity stake in Standard Exploration Licence (SEL) 2/11, offshore Ireland, to 100 percent, with the assignment of a 50 percent interest from its partner, PSE Seven Heads Limited. The company revealed in September that it remains “well placed” to deliver its plans and that it continues to be optimistic about the Irish oil and gas sector in spite of a challenging industry backdrop.
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