Providence Resources has reported a net loss of €41.6m for last year, mainly due to the company's decision to sell its Gulf of Mexico portfolio.
Revenues for 2010 amounted to €11m which the company said reflected a slight reduction in UK production volumes due to drilling operations being interrupted in the fourth quarter and the lower price oil seen last year.
The company said the average price of oil seen last year was $80.03 a barrel compared to $88.64 in 2009. Providence said it saw total annual production of 185,151 barrels of oil last year compared to 187,640 in 2009.
During the year Providence continued to expand its production base onshore UK with a new well now in operation. It also announced the largest drilling programme ever to be carried out offshore Ireland. This comprises a mixture of exploration prospects and appraisal development projects in the Celtic Sea Basin (Barryroe and Hook Head), Kish Basin (Dalkey Island), Rathlin, North Porcupine Basin (Spanish Point) and South Porcupine Basin (Dunquin).
During the year, Providence decided not to proceed with the Kinsale Head Option for gas storage, but said it still sees major potential in gas storage and it is continuing to look at the feasibility of the Ulysses project in the Irish Sea.
'The focus for 2011 and beyond is on turning the drill bit on our extensive portfolio of production, appraisal and exploration assets in Ireland the UK,' commented Providence CEO Tony O'Reilly.
'The company firmly believes that recent advances in technology, infrastructure and commodity pricing combine to present a unique opportunity to test the commercial potential of a number of these assets,' he added.
The share price for Providence fell more than 4% in the wake of the results but recovered this afternoon and finished up 0.7% to stand at €3.00.
