18th Sep 2013 08:44
LONDON (Alliance News) - 3Legs Resources PLC Wednesday said it swung to profit in its first half on the back of a significant foreign-exchange gain and lower administrative expenses.
The European oil-and-gas exploration and development company, which focuses on shale gas potential in Poland and Germany, said it made a pretax profit of GBP746,000 for the six months ended June 30 compared to a pretax loss of GBP2.0 million the previous year.
The finances of 3Legs were significantly improved by a foreign-exchange gain of GBP2.2 million compared to a foreign-exchange loss of GBP694,000 in the previous-year half. The company would have remained loss-making if not for the foreign exchange gain.
The company also lowered administrative expenses by 16% to GBP1.3 million from GBP1.6 million, and as a result of organisational changes, the company is targeting a reduction in cash administrative expenses of roughly 50% by the end of the year.
3Legs has been conducting a range of hydraulic fracturing tests at its key wells in the western Baltic Basin and has significantly reduced operations at its southern Poland concession.
"While we have flowed gas to surface from all four wells on our western Baltic Basin concessions, it will take further drilling and testing of wells on or close to our concessions in order to arrive at a better understanding of the potential of our two shale targets," Chief Executive Kamlesh Parmar said in a statement.
3Legs resources shares were up 1.45% to 26.25 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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