Petrel Resources has released preliminary results recording a pre-tax loss of €227,000 in 2015, down from almost €3m the previous year.

The company reported a positive outlook following the award of two licensing operations in the recent Irish offshore oil bid round.

The under-two year options comprise three blocks and two part blocks. On its two frontier exploration licences in the Atlantic, where it has a joint venture with Woodside, it said an extensive seismic programme has commenced.

It reported a loss per share of 23 cents as compared to 63 cents in 2014.

In a statement accompanying preliminary results, the Irish exploration company said despite challenges in the sector the 2015 second round offshore licence options was successful while a number of “super major oil companies” obtained blocks in the first round of 2016.

In 2013 it reached agreement with the Australian gas major Woodside for a joint venture on the two licensing optioned with a view to converting these into full licences.

Woodside is now undertaking an extensive 3D seismic programme on Petrel licence 3/14 offshore in Kerry in waters of up to 1,000 metres in depth.

New ground awarded to Petrel this month totals 924 square kilometres, including 664 bordering the 1983 Connemara discovery made by BP in the north west Porcupine.

Its second option covers 260 square kilometres in the eastern Porcupine and is covered in the 3D seismic.

Exploration is costly. Drilling a single well can cost more than $100 million and one success can incur further “proving” expenditure as well as subsequent investment of billions.

“The Irish Atlantic is alive exploration frontier. Despite 43 Atlantic wells over 38 years and the Corrib gas discovery, it is significantly under explored,” the company said.

“The challenges are big, but so too the potential prize.”