Irish oil and gas exploration company Providence Resources says it has “the necessary cash flow” to meet its operational requirements.
The company said it should benefit next year from the resumption of production lost due to Hurricanes Gustav and Ike coupled with the start of new output in the Gulf of Mexico.
The decision to enter multi-year hedge contracts at base prices of $100 per barrel for oil would enhance the cash flow position.
Providence now holds interests in 27 blocks off the west coast of Ireland in partnership with Exxon Mobil.
At 11.55am Providence shares were trading at 0.029 cent, giving the company a market capitalisation of €72 million. The company's shares have declined 66 per cent over the last 12 months.