23rd Jun 2015 07:06
LONDON (Alliance News) - Roxi Petroleum PLC Tuesday said its "sole objective" in 2015 is to achieve 4,000 barrels of oil per day from its flagship asset, as it said it swung to a substantial pretax profit in 2014 after reversing a previous impairment.
The oil and gas company operating in Kazakhstan reported a USD20.1 million pretax profit in 2014, swinging from a USD9.0 million loss in 2013 on the back of the reversal of a USD25.0 million impairment.
Roxi said due to the "positive test results" from drilling the wells in the BNG Contract Area in 2014, it decided to partially reverse some previously recognised impairments on the license.
Revenue for the year totalled USD1.6 million, up from USD957,000, whilst administrative expenses fell to USD4.9 million from USD5.4 million and finance costs dropped to USD958,000 from USD4.3 million. Finance income also experienced a small rise in the year.
Roxi is currently in the process of selling its interest in the Galaz contract area, and the proceeds from that sale, alongside income from oil sales, means the company is fully funded to conduct its 2015 drilling programme, it said.
"Provided our deep wells at BNG start producing consistently and despite the fall in the oil price Roxi management expect income to rise during 2015, as oil is produced during the testing phase of the deep wells at BNG. General and administrative costs are not expect to materially change in 2015 and as noted above the costs of drilling has already fallen," said Roxi.
"Crucially for smaller exploration companies development costs for 2015 at BNG will be covered from the proceeds of the sale of Roxi's and Baverstock interests in Galaz. Roxi's management therefore expects, provided the deep wells at BNG come in, the company will be in materially stronger position at the end of 2015," it added.
Roxi said its "sole objective" in 2015 is to achieve a production rate of 4,000 barrels per day from the BNG area.
Roxi shares were down 4.3% at 16.75 pence at the open Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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