30th Jun 2014 10:03
LONDON (Alliance News) - Northcote Energy Ltd Monday said its pretax loss widened significantly in 2013 as higher revenues were offset by increased costs, expenses and impairments due to the company's acquisition strategy during the period.
The onshore US oil and gas exploration and production company said its pretax loss widened to USD3.8 million from USD181,000 the previous year.
The company said its revenues jumped to USD989,000 from USD113,000 as its production levels increased to 100 barrels of oil equivalent per day ahead of schedule.
However, Northcote also noted that its cost of sales increased, it was hit by a USD1.3 million impairment charge, and its general administrative expenses increased to USD2.2 million from USD241,000.
The company said its loss for the year reflected high levels of acquisition activity during the period and costs related to its listing in early 2013.
The company is currently carrying out a range of operational initiatives to deliver 250 barrels of oil equivalent per day in the near future, and said that it expects substantial improvements in profitability during 2014 as it moves from an acquisition phase to development operations.
Northcote shares were down 8.1% to 0.850 pence, putting it amongst the top AIM-All Share fallers on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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