Providence Resources has made great progress in 2007. The company's successes include a significant oil discovery at Hook Head, offshore Ireland; $250 million Revolving Credit Facility agreed with Macquarie Bank; two new gas wells producing at High Island A268 in Gulf of Mexico; acquisition of majority stake in the Singleton oilfield, onshore UK effective, increasing daily production and Company cash flow; a new Farm-Out Agreement with Chevron and Vitol for AJE Field, Nigeria and agreed plan to drill AJE 4; and the institutional Placing of shares raised $25.7 million.
Commenting on activity during 2007 and future plans for 2008, Tony O'Reilly Jr., Chief Executive of Providence Resources P.l.c., said: "2007 has been an extremely positive year for Providence. Not least in Ireland where the discovery of oil at Hook Head, the continuing work on our west of Ireland prospects at Dunquin and Goban Spur and the ongoing farm out process at our Spanish Point Project, has confirmed our strategy and real commitment to the region.
"Diversification continues to be key to our business and the acquisition of the majority stake in the Singleton oilfield (taking Providence's stake to 99.125%) plus the discovery and bringing online of 2 new gas wells at High Island, Gulf of Mexico, has substantially increased cash flow for the Company, as well as moving us closer to our stated objective of 2,000 BOEPD.
"This year, we have also consolidated our relationships with our existing partners ExxonMobil, Sosina, Forestgate, Atlantic Petroleum, CMI and Dyas, as well as build relationships with new partners, such as Chevron and Vitol on the AJE Project. In addition, recently, we announced that we had secured a US $250 million Revolving Credit Facility with Macquarie Bank, which will allow us to capitalise on these relationships and progress a number of production and development opportunities.
"Looking towards 2008, Providence is very well placed to enhance all three areas of its' portfolio of production, appraisal and high-value exploration. Increased production has provided important cash flow with which to unlock the potential of the larger assets. Based on our current plans for 2008 (and subject to the availability of rigs), we intend to drill a number of wells next year across our whole portfolio in Ireland, the United Kingdom, the United States (Gulf of Mexico) and Nigeria. We look forward to outlining further details in the coming months."
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