17th Sep 2018 11:15
LONDON (Alliance News) - Phoenix Global Resources PLC on Monday said it is making good progress on its Argentinian assets, as interim revenue rose on the back of higher oil prices.
For the six months to June, Phoenix's revenue was up 4.5% to USD92.9 million compared to USD88.1 million a year ago on a pro forma basis, with that figure including both the former Andes Energia PLC and Trefoil Holdings BV throughout. On a reported basis, revenue rose from USD58.0 million.
In August last year, Andes Energia bought Trefoil in a reverse takeover, creating Phoenix Global Resources.
Average oil production for the period was 10,776 barrels of oil equivalent a day, down from a pro forma 11,304 in the second half of its last financial year. The realised oil price however was USD60.43 a barrel, up from USD49.57 in the same period a year prior.
Phoenix said the slightly lower production was due to new drilling, in which there were delays, as well as some natural decline and bad weather over winter.
The company's reported pretax loss was USD30.8 million, from USD7.0 million a year prior, due to higher depreciation, depletion, and amortisation and some non-recurring expenses.
Phoenix has a range of both producing and exploration assets in Argentina. Those producing are the Neuquina basin, Puesto Rojas, and Chachahuen.
Chief Executive Anuj Sharma said: "The first six months of 2018 have seen Phoenix make significant progress with the appraisal programme of its substantial position in the Vaca Muerta having crucially satisfied permitting requirements of the Mendoza province in respect of our planned unconventional activity.
"With this, Phoenix has now moved to investing into drilling and completion activity to appraise and unlock the massive potential of our acreage. During this period, Phoenix is conscious to keep in close contact with local Mendoza representatives as we continue to be a responsible, safe and environmentally sound operator and to provide jobs and investment into the Mendoza region."
He added: "The unconventional drilling and completions campaign has been progressing well and as planned with a number of wells completed and currently being put in the flowback stage. I look forward to providing further updates as we progress through and beyond the flowback stage and production from the wells stabilises when we expect to be in a position to ascertain sustainable flow rates and estimates of ultimately recoverable reserves."
Phoenix Global Resources shares were untraded on Monday, last quoted at 21.50 pence each.
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