4th Apr 2019 12:14
LONDON (Alliance News) - Independent Oil & Gas PLC on Thursday said its loss doubled in 2018 on a number of factors, most noticeably finance expense, as it continued to develop its assets in the southern North Sea.
Shares in the UK-focused oil and gas company were down 3.0% at 12 pence on Thursday.
The company posted an annual pretax loss of GBP5.6 million, twice its GBP2.8 million loss the year before. This was due in large part to finance expense, which increased 72% to GBP3.1 million from GBP1.8 million.
Adding to this, the company experienced a swing to a GBP334,000 loss on foreign exchange from a GBP333,000 gain the year before. Administration expenses rose 39% to GBP974,000 from GBP700,000 and project, pre-licence, and exploration expenses more than doubled to GBP922,000 from GBP430,000.
During the year, the company acquired the Thames Pipeline and demonstrated that the pipeline is a viable export route for its gas assets. It was also awarded ownership of three new license areas. Development continued on its core project areas, which are the Blythe field and Vulcan Satellites in the southern North Sea, as well as the contingent resources of its Goddard discovery.
Independent O&G Chief Executive Andrew Hockey said: "Looking forward, two key catalysts to value growth should come to fruition in 2019. We look forward to concluding our core project development discussions and expect to be in a position to select our preferred party to deliver either a farm-in or capital markets solution to reach [final investment decision] on the core project in 1H 2019."
"The second near term value catalyst is the high-impact Harvey appraisal well which could significantly enhance the value of our [southern North Sea] development. In addition to this we expect to submit and will continue to progress our field development plan for Goddard which will add significant incremental value to our core project."
Post year-end, in April, the company announced a GBP16.6 million placing, GBP535,000 subscription, and GBP2 million open offer. Proceeds will be used to drill an appraisal well at its Harvey licence in the southern North Sea, as well as to fund the field development plan for Goddard.
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