Exploration company Providence Resources has reported an operating loss of €2.216m for the six months to the end of June
This was an improvement from the operating loss of €3.787m the same time last year and the company said it was entering the second half of the year with renewed optimism.
It also noted a further reduction in administration costs and legal expenses in the first half of the year.
In June the company announced a capital fundraising initiative and the company said it would use the proceeds to pay off its corporate debt, working capital as well as finance its share of funding the drilling of the Druid exploration well.
The proceeds of the placing also allowed Providence to fund its payment after a recent litigation case with drilling firm Transocean.
The company said that the first half of 2016 continued to see market volatility that presented the exploration industry with significant commercial and financial challenges.
"A solid balance sheet and significantly enhanced financial strength, combined with the planned near term drilling activity at our Druid prospect have the potential to create significant shareholder value," commented the company's chief executive Tony O'Reilly.
The company said that the Irish offshore had become a very attractive location for industry majors as evidenced by the record number of new licensing authorisations awarded in the 2015 Atlantic Margin Licensing Round.
"We believe that Druid represents one of the few world class deep-water exploration prospects being planned for drilling in 2017. Having secured the necessary finance and now with an even lower cost estimate than previously forecast, we are moving forward with our drilling programme targeting a spud date in June 2017," the company's CEO said.
