Operating losses at Irish based oil and gas exploration firm Providence Resources narrowed in 2014, with the company recording a loss of €6.46 million.

That compared with €7.23 million in 2013, but overall losses rose to €11.489 million or 17.7 cent per share, up from €2.797 million or 4.33 cent in 2013.

The company raised €25.9 million through a share placing during the year, the proceeds of which were intended to fund costs associated with its multi-well drilling programme, and agreed debt facilities of $24 million with Melody. Some $20 million is scheduled for repayment in 2016. A second debt facility, worth $4 million, is to be repaid in June 2015.

Providence is continuing farm out discussions with a number of parties for its Barryroe Oil project and has applied to extend the licence to cover potential further field extensions outside of the currently licensed area.

During the year, Providence converted three Atlantic Margin licensing options -the Drombeg Oil prospect, Spanish Point South Gas Prospect and Newgrange Gas Project - into frontier exploration Licences. It also carried out new seismic surveys at the three prospects.

Chief executive Tony O’Reilly said it was a year of “significant progress” despite a challenging backdrop for the industry.

"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," he said.

Providence said the outlook for the industry remained challenging with the current oil price environment hampering investment. However, it noted that the recent rise in oil prices and increasing M&A activity served as a positive signal for the sector, and Providence remained optimistic for its own prospects and the overall Irish oil and gas sector.