LONDON (Alliance News) - Providence Resources PLC Wednesday said it is seeking to clarify the position of a potential partner for the Barryroe project offshore Ireland as it reported a wider pretax loss in 2014 on the back of higher finance costs.
Lansdowne Oil and Gas PLC also released a statement that noted the update concerning the Barryroe project due to its 20% interest in the project.
Providence shares dropped 10% on Wednesday morning to 24.30 pence per share whilst Landsdowne shares fell 15.3% to 6.78 pence per share.
The Irish based oil and gas exploration company reported a pretax loss of EUR11.5 million in 2014 which widened from the EUR7.8 million loss in 2013 as finance expenses rose to EUR5.1 million compared to EUR713,000 a year earlier. Providence does not currently generate any revenue.
Administrative expenses fell to EUR6.1 million from EUR6.5 million and impairments totalled EUR99,000 compared to EUR678,000 a year earlier, but these were partially offset by a fall in finance income to EUR39,000 from EUR180,000 and pre-license expenditure increasing to EUR245,000 from EUR68,000.
"2014 was a year of significant progress on a number of fronts for Providence despite a very challenging backdrop for the oil and gas industry," said Chief Executive Tony O'Reilly. "Providence remains focused on building on its diversified material exploration and appraisal portfolio offshore Ireland and will do so by continuing to leverage in partners with whom we can co-venture and who can help validate the prospectivity of our acreage."
In February, Providence said it had reached an agreement on commercial terms with a proposed farminee on its Barryroe asset, offshore Ireland which was subject to closing conditions that were mainly related to financing.
On Wednesday, Providence said "the company advises that the closing conditions referred to have yet to be satisfied and that it is seeking to clarify the status of those conditions and the proposed farminee's position."
Fellow AIM-listed listed oil company Lansdowne also released a statement that noted the updated about Barryroe but did not comment on the news.
"Providence remains well-placed to deliver on its plans and we remain optimistic about the prospects both for the company and the overall Irish oil and gas sector," said Providence.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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