2nd Mar 2016 10:21
LONDON (Alliance News) - Global Energy Development PLC on Wednesday reported a widened pretax loss for 2015, and said it is seeking to position itself to take advantage of an eventual turnaround in the petroleum industry.
The company reported a pretax loss of USD26.7 million, widened from a pretax loss of USD17.3 million in 2014, primarily as a result of an impairment of its Bolivar area assets in Colombia. Revenue also declined to USD365,000 from USD689,000.
Global Energy is a petroleum exploitation, development and production company with operations in Colombia.
The company said that during the year its sole producing well in Colombia, Torcaz #2, averaged around 35 gross barrels of oil per day, yielding 11,240 barrels of oil compared to 8,565 barrels in 2014. However, averaged realised sales prices fell to USD32.46 per barrel, compared to USD80.44 the year before.
Low oil prices meant that oil reserves in the Bolivar area became uneconomic, and as a result, Global Energy opted to fully impair the USD22.2 million carrying value of its Bolivar area oil assets.
"As uncertainty in the market prevails, the company's goal in 2016 is to increase value for its shareholders by searching for investments or acquisitions within the energy sector with the potential for significant upside. The company seeks to position itself and its shareholders to take advantage of an eventual turnaround in the petroleum industry and related pricing increases," said Chairman Mikel Faulkner in a statement.
Shares in Global Energy were down 5.0% at 28.73 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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