17th Sep 2014 10:35
LONDON (Alliance News) - Northern Petroleum PLC Wednesday said it narrowed it pretax loss in the first half of the year, boosted by an increase in oil production.
The AIM-listed oil company posted a pretax loss of USD3.8 million for the six months to June 30, narrowed from a USD4.3 million loss in the first half of 2013.
The company said total oil production for the first six months of the year was 13,629 barrels, generating revenue of USD1.1 million, up from USD418,000 a year earlier.
"The three wells currently being drilled in Alberta will add to the production potential of the field and give us further confidence in our Keg River redevelopment play," said Chief Executive Officer Keith Bush in a statement.
During the first-half, investment in the group's Canadian redevelopment project increased and operations began with three wells being brought into production.
It said that two out of three new wells at its Virgo redevelopment project in Alberta, Canada, have already been drilled, and the drilling rig will now move to drill the third well.
"A service rig will be on location shortly to production test all the wells in succession with results expected to be available in the second half of October," the company said.
In July, the company was awarded two permits in Italy - one onshore in eastern Piedmont and one adjacent to an existing permit in the Sicily channel.
"Political changes are providing an improved business environment in Italy giving more confidence that the group will be able to make progress with the southern Adriatic permits within 2014," the company said in its statement.
Northern Petroleum shares were trading at 19.90 pence Wednesday morning, up 2.7%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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