Rising oil prices boosted first half turnover and profits at listed Irish explorer Providence Resources, the company said yesterday.
Providence said that turnover in the first six months of 2005 grew 23 per cent to €629,000 from €510,000 during the same period in 2004.
Operating profit more than doubled to €265,000. Net profit jumped to €41,000 from €12,0000.
The company's 20 per cent share in the UK Singleton oilfield generated its turnover and profit. Chief executive Tony O'Reilly jnr told The Irish Times that the rise in oil prices was the main reason for its growth.
The average oil price in the first half of last year was $33 a barrel, compared to $50 during the same period this year. It costs the company $10 a barrel to produce the oil.
Providence has a 6.3 per cent share in the Aje field off the coast of Nigeria. It is currently drilling a third appraisal well in the field.
Oil and gas have been found in the two wells already drilled. Mr O'Reilly said yesterday he hoped an announcement could be made in relation to this soon.
The company has also won extra acreage in the St George's channel basin off the Republic's south-east coast.
Marathon Oil UK is currently drilling nearby: a successful find will considerably enhance Providence's prospects.
During the first half, the company raised €3 million from the exercise of warrants and got admission to London's Alternative Investment Market (AIM). It has no debt on its books.
