20th May 2015 08:05
LONDON (Alliance News) - Gulfsands Petroleum PLC Wednesday said its pretax loss was slashed in 2014 as it continues to seek funding and partners for its projects.
The oil and gas company, which does not generate any revenue, reported a pretax loss of USD12.1 million in 2014, halved from the USD25.4 million loss it made in 2013 after it wrote off fewer exploration costs and cut administrative expenses.
In 2014, Gulfsands write off exploration costs totalling USD6.0 million, half the USD12.3 million it wrote off in 2013. It also booked a USD2.9 million write off related to Syrian assets in 2013 which it did not repeat in 2014, whilst administrative expenses fell to USD5.5 million from USD9.4 million.
At the end of December, the company had USD19.4 million in cash resources, of which USD11.5 million was restricted and held as security for anticipated work programmes. Gulfsands said as of Wednesday, the company has USD3.0 million in cash and cash equivalents.
"The company is proposing to seek short term, unsecured, financing from some of its shareholders to use as working capital while it implements a new strategy for the group's assets that is both financeable and sustainable in the current equity capital markets. Longer term funding will probably be an equity raising or some combination of debt and equity," it said in a statement.
Gulfsands is currently trying to secure a partner for its projects in Colombia and Tunisia to try to reduce exploration costs, whilst attempting to secure funds to continue capitalising opportunities regarding its vast and differing portfolio in Morocco.
Gulfsands shares were down 3.1% to 14.78 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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