2nd May 2023 14:39
(Alliance News) - Pennpetro Energy PLC on Tuesday said it will look to expand its drill-focused activities in South Texas after it recorded a widened loss in the first half of its financial year.
The North America-focused production company, headquartered in London, said its pretax loss widened to USD356,000 for the six months ended December 31 from USD205,000 for the same period in 2021. Pennpetro reported no revenue for either period.
Chief Executive Officer Thomas Evans said he was confident Pennpetro could continue strengthening its position by acquiring and drilling new wells in active and producing US onshore sites.
It also noted a "new strategic acquisition focus on producing assets and directive into green energy initiatives".
Evans added: "In line with our strategy, all our operations are in highly active plays where the economics of drilling and producing remain attractive at sub-USD30 oil prices. This highlights the success we have had in taking advantage of the prior industry downturn to accelerate the positioning of our south Texas leasehold position in favour of the Austin chalk and Eagleford shale.
"With a strategic foothold in these prolific, low-cost plays established and a proven management team in place, we will look to further expand our position in this US onshore sweet spot, as and when management considers it most advantageous to do so."
Shares in Pennpetro were down 4.8% in London on Tuesday at 3.19 pence.
By Emma Curzon, Alliance News reporter
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