Exploration company Providence Resources has reported an operating loss of €1.063m for the six months to the end of June.

This compares to losses of €5.31m the same time last year and Providence said the improvement was due to the cost reduction initiatives put in place by the company.

Providence said its financial position stabilised in the six month period through a successful share placing and subscription in April. 

By the end of June, Providence said its total cash and cash equivalents stood at €2.269m compared to €1.788m last year, while it had no debts.

It also said its portfolio has been rationalised to establish a clear focus on its Barryroe development and adjacent Celtic Sea opportunities.

During the six month period, Providence said it had refreshed the Barryroe farmout process, which resulted in SpotOn Energy being granted exclusivity up to the end of October. 

Alan Linn, Providence's chief executive, said that Barryroe is one of the largest undeveloped offshore oil and gas fields in Europe and is unquestionably the core asset in the company's portfolio.

"Good progress has been made to date, supported by a capital raising of $3.3m, before expenses, which provided working capital in April to fund the Barryroe farmout process and move the project into production through phased economic development," Mr Linn, who took up the CEO position in January, said.

Alan Linn said that Providence is fully committed to push ahead with the production of both oil and gas from the Barryroe field. 

He said the company aims to agree a Barryroe field development partnership and a phased Barryroe development plan, which are designed to progress economic production from a low risk, low emissions, energy efficient hydrocarbon development offshore Ireland.

"SpotOn Energy has established relationships with a consortium of world class services companies willing to underwrite the quality of the Barryroe project by taking development risk and deferring a portion of their normal fees into the production phase of the project. Farmout discussions are progressing on schedule," the Providence CEO said.