31st Mar 2016 12:00
LONDON (Alliance News) - Hague & London Oil PLC Thursday said it will need to raise further funds in order to survive 2016, stating its board is addressing the near-term liquidity issues through the restructuring of its portfolio, as the company released its first set of results for 18 months.
The exploration company released its full year results, but this period covered the 18 months to the end of 2015 as it straddled the time during which Hague completed its merger with Wessex Exploration PLC.
With no revenue coming in, Hague said its pretax loss in the 18-month period amounted to GBP6.5 million compared to the GBP6.9 million loss reported in the 12-month period to the end of 2014, driven by reduced losses from its joint ventures.
Hague said the integration of Wessex and the restructuring of its portfolio have been completed, with the new management of the company already striking a deal to acquire the Duyung production sharing contract offshore Indonesia, where they hope the company can take advantage of the buoyant and yet low-cost gas market in South-East Asia.
Once completed, the Duyung transaction would see Hague acquire 85% and the operatorship of Duyung from West Natuna Exploration Ltd, a private Singapore-based entity, who would retain a 15% stake.
"Duyung could represent a low-cost, low-risk opportunity for natural gas appraisal within the targeted area of energy-hungry Southeast Asia," said the company.
Hague reported a low cash balance of only GBP300,000 at the end of 2015, but said it is looking to address near-term liquidity issues through the restructuring of its portfolio. The company admitted it will require additional funds in 2016.
Hague has a variety of other assets spread across South America, France, East Africa, North Africa, the Philippines and in England.
Hague shares were down 19% to 9.75 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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