30th Sep 2014 11:12
LONDON (Alliance News) - Frontera Resources Corp Tuesday reported a slightly narrowed loss and small rise in revenues for the first half of 2014 and said it expects an improved performance in the second half from both its oil and gas operations.
Frontera's shares dropped 19% to 1.18 pence per share after releasing its interim results.
The company reported a net loss of USD5.63 million in the six months ended June 30, compared to a USD5.65 loss in the first half of 2013.
Frontera increased revenue from crude oil and gas sales to USD3.3 million in the first half, compared to USD3.1 million in the same period in 2013. It reported a cash balance of USD360,311 at June 30, with a total debt of USD37.1 million.
Delivery of gas to new customers from the Mtsare Khevi gas complex in the Republic of Georgia, during the months of April through June equalled approximately 10.5 million cubic feet of gas, said the company.
From the July 1 to September 30, delivery of gas increased to 126 million cubic feet of gas as Frontera's market share developed further. New customer sales and production capability are expected to continue to increase throughout the remainder of this year, it added.
Crude oil production during the first half of 2014 equalled approximately 33,000 barrels of oil, compared to approximately 35,600 barrels of oil in the first half of 2013.
"During the first half of 2014 the company achieved several important value-creation milestones associated with our work in the Taribani Field complex and the Mtsare Khevi gas complex [both in the Republic of Georgia]. In addition, we have continued to progress our initiatives across the balance of our portfolio. Accordingly, we now expect to see continued increased positive financial impact of this work as we progress through the second half of this year," said Chairman Steve Nicandros.
By Joshua Warner; [email protected]; @JoshAlliance
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