26th Sep 2019 12:21
(Alliance News) - Independent Oil & Gas PLC on Thursday said its loss widened in the first half of 2019 due to an increase in operating expenses.
The AIM-listed development and production company reported a pretax loss of GBP4.6 million, compared to GBP2.6 million a year earlier, as administrative and finance expenses rose by 80% to GBP2.1 million and by 81% to GBP2.6 million, respectively.
Finance expenses include loan and financing charges calculated on an effective interest rate basis, plus accrued loan and other interest, net of capitalised interest charged to development assets.
"In challenging circumstances, the Independent Oil & Gas team has achieved a series of very significant steps to unlock the value of our portfolio during the first half of 2019 and thereafter," said Chief Executive Andrew Hockey.
"We continue to focus our efforts on ensuring that all remaining farm-out completion conditions, which consist of routine consents and agreements with third parties, are met as soon as possible. At completion we will be fully funded for the phase 1 development execution phase and we remain as focused as ever on delivering value for our shareholders," added Hockey.
Independent Oil & Gas secured a farm-out agreement with CalEnergy Resources Ltd, a subsidiary of Berkshire Hathaway Energy Co, to farm out 50% of its southern North Sea assets, as well as the Thames pipeline and associated Thames reception facilities, for a potential total of up to GBP165 million in cash and development carries.
The stock was trading 1.3% lower on Thursday in London at 19.50 pence a share.
By Evelina Grecenko; [email protected]
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