25th Feb 2014 11:55
LONDON (Alliance News) - Oilex Ltd Tuesday said its pretax loss widened slightly on administrative expenses in its full-year figures and announced further development of Magna Energy Ltd's ongoing acquisition of interest in the Cambay site.
The oil and gas exploration and development company said its pretax loss widened to USD2.8 million for the twelve months ending 2013 from USD2.5 million the previous year despite a 33% increase in revenues to USD121,927 from USD91,475 in 2012.
The company said its cost of sales remained largely flat at USD197,596 but its administrative expenses increased to USD1.6 million from USD1.2 million in 2012.
Oilex said it remains focused on reducing costs and increased sales were due to strong production at its Cambay oil field in India.
The company separately announced that the joint venture partners to the Cambay Production Sharing contract have waived all pre-emption rights in relation to the proposed purchase by Magna of an additional 5% participating interest in the PSC for USD2 million.
Oilex said the proposed acquisition of the option interest is part of an original purchase by Magna of an initial 10% participating interest in the PSC in August 2013.
The company said it is currently in discussions with Magna over the USD2 million cost and that the acquisition of the option interest and sale interest is subject to the Government of India's approval
Upon receipt of such approval, Magna will hold a 15% participating interest in the PSC with Oilex retaining a 30% participating interest.
Oilex shares were down 1.3% to 3.90 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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