10th Mar 2014 15:27
LONDON (Alliance News) - Forum Energy PLC Monday said it narrowed its losses significantly for the year 2013, having booked in huge exceptional costs the year before, but reported marginally flat revenues for the year, and said the commencement of its SC72 drilling programme is pending due to on-going discussions between the Philippine and Chinese governments.
The UK oil and gas exploration and production company focused on the Philippines, reported a pretax loss of USD3.3 million for the financial year ended December 31, 2013, compared with a loss of USD26.4 million in 2012, after booking in a huge impairment charge of USD25.4 million associated with its Libertad field in the Philippines. The group incurred an impairment charge of USD1.3 million in 2013.
The company reported a slight decline in revenues to USD4.4 million, compared with USD4.5 million the prior year.
"Whilst it is disappointing that we have been unable, as a result of matters beyond our control, to carry out drilling under the second sub-phase of the Service Contract 72 contract, we remain committed to pursuing the project and continue to have the support of the Philippine Government as demonstrated by the extension awarded in respect of the second sub-phase," said Chairman Robin Nicholson in a statement.
Forum Energy said it spent USD4.2 million in capital expenditure on Galoc Phase II in 2013, compared with only USD0.7 million in 2012, which it said will improve its future production and revenue stream.
Shares in the company were trading 1.3% lower at 75.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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