1st May 2019 12:04
LONDON (Alliance News) - Pennpetro Energy PLC on Wednesday said its loss widened in 2018 due to rising finance costs and a reduction in finance income.
The oil and gas company, which focuses on production in the Gonzalez oil field in Texas, posted a USD788,630 annual pretax loss, more than five times its USD153,269 loss in 2017.
Finance costs skyrocketed to USD466,682 in 2018 from only USD6,823 the year before on bank charges and interest expenses. Finance income was reduced to USD273,126 from USD561,849.
Administrative expenses shrank to USD595,074 from USD708,295 the year prior. No revenue was recorded in either 2018 or 2017 as Pennpetro is still in its development phase.
Pennpetro acquired Nobel Petroleum UK Ltd and its US subsidiaries in 2017, whose subsidiaries include a portfolio of leasehold petroleum mineral interests in Texas, "comprising the central undeveloped portion of the Gonzalez oil field".
Following this, Pennpetro has increased its working interest in the Gonzalez leases to 75% from 50%, raising its undiscounted net revenue interest in Gonzalez to USD92 million from USD62 million.
Pennpetro Chair Keith Edelman said: "For 2019, our main objectives are to build upon the initiative that commenced with the completion of our initial well...and to further acquire additional land leases and to progress the permitting and horizontal development of our second objective well."
Shares in Pennpetro were untraded at 69.00 pence on Wednesday.
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