17th Sep 2013 07:33
LONDON (Alliance News) - Gulfsands Petroleum PLC Tuesday said it narrowed its pretax loss during its first half as intensive cost-cutting exercises improve the company's balance sheet.
The oil-and-gas exploration-and-production company with operations in the Middle East and North Africa said its pretax loss narrowed to USD11.8 million for the six months ended June 30 from USD18.1 million in the same period a year before.
The company managed to bring its administrative expenses down 27% to USD7.2 million from USD9.8 million, thanks to the company's sustained cost-reduction programme. Also contributing to the savings, the group took control of its oil and gas interests, leading to some operating expenses being reclassified at capital spending.
Gulfsands Petroleum lowered its production by 36% during the period, to 158 barrels of oil equivalent per day from 245 barrels as the company continued its suspension of activities in Syria and developed operations elsewhere. The group continues to value its investment in Syria at USD102 million.
As a result of lower production, sales at the company also fell 24% to USD2.2 million from USD2.9 million.
The company also said it have commenced 2D and 3D surveys at its Morocco project and expects to commence a 5 well drilling programme at the site in October.
"I hope that by year end, as we re-commence drilling activity with our first wells in Morocco, we will have some more tangible progress to report," Chairman Andrew West said in a statement.
Gulfsands shares were down 3.78% to 70.00 pence in early trading Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Gulfsands Petroleum