18th Nov 2013 09:14
LONDON (Alliance News) - Edge Resources Inc. Monday said its net loss narrowed significantly in its first half, and the company has closed a CAD3.5 million placing that was over subscribed.
The oil and gas exploration and development company, with operations in the US, said its net loss narrowed to CAD245,668 for the six months ended September 30 from CAD2.6 million the previous year. In the three months to September 30, the loss was CAD214,990 versus CAD2.4 million.
The company said its total assets fell to CAD35.9 million as of September 30 from CAD37.8 million, but its net-of-royalties revenue increased 17% to CAD4.1 million in the half year from CAD3.5 million a year before, as oil prices and strong oil and gas sales buttressed company finances.
However, Edge Resources said its total income in the half was up by the lower figure of 4.8% at CAD4.4 million from CAD4.2 million, as the company realized a loss on financial derivatives and posted lower gains on the disposal of assets compared to the previous year.
The company also announced that it completed an over-subscribed placing through the issuance of 35 million common shares at 6 pence, a 14% discount to its price on AIM, and the CAD3.5 million in net proceeds will be used to further develop the company's shallow, conventional oil prospects in Eye Hill, Saskatchewan.
Edge Resources shares were down 2.5% to 6.95 pence in early trading Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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