28th Aug 2014 12:09
LONDON (Alliance News) - Oil and gas company Aminex PLC Thursday said its pretax loss widened in the first half of the year as revenue declined, administrative costs rose and it booked an impairment on the US assets it sold.
The company reported a pretax loss of USD3.97 million for the six months to June 30, wider than the USD2.8 million loss it reported a year earlier, as revenue dropped to USD321,000 from USD442,000, and administrative costs rose to USD1.9 million, from USD1.1 million, mainly due to one-off payments to consultants and for fundraising fees.
Aminex sold its US assets in June to Northcote Energy Ltd and Springer Oil and Gas LLC for USD5 million in cash and shares. It booked an impairment charge of USD250,000 in the half-year accounts after reviewing whether the asset was impaired against the fair value.
That deal left the company focused on its assets in Tanzania, some of which are on the verge of producing. It said its Kiliwani North development is on track to produce its first gas in early 2015.
"As the company is now financed through to first African production and in the final stages of completion of its Ruvuma seismic programme, the board's objectives will be firstly to pay down outstanding corporate debt as early as possible and secondly to expand the business, in Tanzania and elsewhere in Africa, through seeking production and development opportunities," Chief Executive Jay Bhattacherjee.
The company said it is seeking to cut administrative expenses to about USD250,000 a month, while expanding its technical ability.
Its net cash balance at the end of the half was USD5.4 million, up from just USD564,000 a year earlier.
Aminex shares were down 1.5% at 0.852 pence Thursday afternoon.
By Steve McGrath; [email protected]; @SteveMcGrath1
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