Oil and gas prices will continue to rise, according to the chief executive of an Irish exploration company.

Providence Resources chief Tony O'Reilly jnr told Reuters news agency yesterday that oil prices would remain above $50 (€39) a barrel in the future.

"There will be dips but the forward trend for both oil and gas suggests higher prices than we have now," he said.

Providence yesterday reported that profits for 2005 fell to €127,000 from €165,000 the previous year. Turnover grew 31 per cent to €1.4 million.

The company is seeking a partner to develop the Spanish Point field off the west coast.

Providence believes that the field has the potential to produce 160 million barrels of oil and 1.4 trillion cubic feet of gas.

Mr O'Reilly said he expects that over 40 companies will have expressed interest in the deal by the end of the process.

The company is scheduled to announce a partner some time in the next quarter.

Earlier this year, the Providence group signed up the industry giant Exxon-Mobil as a partner on its Dunquin prospect off the coast of Kerry.