19th Sep 2013 12:01
LONDON (Alliance News) - New World Oil and Gas PLC Thursday said its pretax losses widened significantly in its first half as an exceptional write-off and administrative costs hit the company.
The oil-and-gas exploration-and-development company focused on Belize and Denmark said its pretax losses widened to USD9.5 million for the six months ended June 30 compared to USD1.4 million the previous year.
The company is yet to make any revenues but experienced a one-off USD6.9 million write-off on one of its dry-wells and an increase in administrative expenses to USD1.2 million from USD485,000 after the company undertook an in-depth review of all overhead expenses, including the remuneration of directors.
As a result, the company said it made an operating loss of USD9.2 million from USD1.4 million the previous year which represents the bulk of its losses.
The company said that after the first-half period its shareholders approved a USD25 million investment by Niel Petroleum, together with a related conditional USD25 million debt facility.
"The partnership with Niel provides the company with substantial financial resources and access to exciting new projects in highly prospective areas which will go a long way to help us achieve New World's transformation into a sustainable oil and gas company with producing assets," Chairman Bill Kelleher said in a statement.
New World shares were down 6.7% to 0.980 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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