29th Mar 2019 13:28
LONDON (Alliance News) - Nu-Oil & Gas PLC on Friday said its loss widened slightly in the first half of its current financial year as it assessed potential revenue streams from Canadian assets.
The development and production company also said it has completed a share placing raising GBP250,000 for general working capital requirements.
Nu-Oil placed 83.3 million shares at a price of 0.3 pence each. The stock was trading 41% lower on Friday at 0.34p a share, giving it a market capitalisation of GBP7.8 million.
Following the admission, the company has 1.46 billion shares overall.
"The company's efforts to progress its activities requires funding," said Executive Chair Graham Scotton. "The speed of progress made by Marginal Field Development Co Ltd with respect to gas to wire opportunities gives me confidence in its activities."
On Thursday, Nu-Oil said its 50% owned joint venture Marginal Field intends to establish a gas to wire project financing business. Marginal Field will hold a 30% stake in the unit, which cannot be diluted, with the remaining 70% held by Marnavi. Both companies will have representatives on the board of the joint venture.
Turning to the results, the company posted a pretax loss of GBP972,000 for the six months to the end of December 2018 compared to GBP916,000 a year earlier. Nu-Oil did not generate any revenue in either year.
The company said it is awaiting results of activity on its lease, PL2002-01(A) in western Newfoundland, Canada, to assess the impact of that asset on future revenue streams.
The agreements that Nu-Oil has entered into with respect to PL2002-01(A), provide for the company to receive 50% of future net revenue from that asset, following cost recovery by its operating partner, PVF Energy Services Inc.