30th Jun 2016 10:34
LONDON (Alliance News) - Frontera Resources Corp on Thursday reported a wider pretax loss in 2015 as revenue almost halved on delayed investments in Georgia.
The oil and gas company said its pretax profit in 2015 widened to USD20.5 million from USD12.5 million in 2014, as revenue almost halved to USD3.7 million from USD6.4 million.
Frontera said it is continuing to invest in its exploration work programmes in Georgia and remains "diligent" to capitalise on this despite a depressed commodity price environment for the oil and gas sector.
It noted, however, that political challenges in Georgia's domestic gas market continue to delay investment due to the Ministry of Energy's discouragement of ongoing exploration of domestic natural gas resources in favour of preserving existing gas import monopolies.
"As efforts are ongoing to address the Ministry's opposition to this work, we are hopeful that it will ultimately see the benefit of allowing for a free and competitive market for US and foreign investment in its domestic natural gas sector that today does not exist," Chairman and Chief Executive Steve Nicandros said in a statement.
"Overall, we look forward to progressing our work programmes in Georgia and the Greater Black Sea region as we believe the company remains uniquely positioned to achieve near and long-term growth from its efforts in Eastern Europe," he added.
Shares in Frontera were trading down 1.2% at 0.1432 pence on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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