26th Jun 2015 07:05
LONDON (Alliance News) - Oil and gas company IGas Energy PLC on Friday said it swung to a pretax loss in its 2015 financial year as the falling world oil price pushed its average selling prices lower, taking a bite out of its revenue.
IGas, which develops and operates onshore UK fields, said its pretax loss for the year to the end of March was GBP18.5 million, a significant swing from the GBP2.3 million profit it posted a year earlier.
Revenue for the company dropped to GBP58.2 million from GBP75.9 million a year earlier, as its net back per barrel of oil equivalent fell to USD45.5 per barrel in the year, down from USD53.1 a year earlier, while its production for the year also declined to 999,003 barrels of oil equivalent, down from 1 million barrels.
IGas said it has cut its net operating costs to below USD40 per barrel for the year to March 2016, down from USD48.6 in the past year, and said it is seeking to maintain production at 2,750 barrels of oil equivalent per day over the next year.
"Over the next twelve months we anticipate acquiring further seismic data, securing new sites and submitting several planning applications for exploration wells and flow tests. We will also drill further exploration/appraisal wells including at our site in the East Midlands and anticipate this will start in the first half of 2016," said Chief Executive Stephen Bowler.
The stock was down 7.0% at the open Friday at 29.52 pence per shares.
By Sam Unsted; [email protected]; @SamUAtAlliance
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