30th Jun 2015 10:31
LONDON (Alliance News) - Independent Oil & Gas PLC on Tuesday said its pretax loss widened significantly in 2014 due to impairment charges.
The North Sea-focused company said its pretax loss for the year was GBP12.1 million, compared to a GBP1 million loss a year earlier. The loss was driven by a GBP8.3 million writedown the company booked on its oil and gas properties, due to a fall in the oil price and to higher share-based payments it made in the year.
The company, which produces no revenue, acquired the licence containing the Cronx discovery over the course of the year and entered into a gas sales agreement with a unit of BP PLC.
"It has been a period of operational progress for the company as we pursue our North Sea hub strategy," said Chief Executive Mark Routh.
"We have also been successful raising short-term funds at a premium to our market place, providing stability as we progress our long-term financing discussions, due to the quality of our assets and the strength of our team. This gives me great confidence that we will be able to fulfil our longer-term strategic aim of producing 20,000 [barrels of oil equivalent per day] net to IOG by the end of 2018," said Routh.
Shares in Independent Oil & Gas were up 3.1% to 20.62 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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