17th Sep 2013 09:43
LONDON (Alliance News) - Serica Energy PLC Tuesday said its pretax losses narrowed in its first half as lower costs helped the company despite the end of production at its Kambuna field.
The oil-and-gas exploration, development and production company, with operations in Europe and Africa, said its pretax loss narrowed to USD2.0 million from USD3.6 million for the six months to June 30.
The company said sales fell to USD3.5 million from USD8.5 million as its Kambuna field in Indonesia continued its natural decline towards its production completion in July. However, cost of sales decreased significantly to USD2.9 million from USD9.2 million due to lower depletion and operating costs.
Serica said its operating loss narrowed to USD2.0 million from USD4.2 million due to the lower cost of sales, coupled with lower administrative expenses of USD2.0 million versus USD2.8 million the previous year.
Production dropped to an average 6.2 million square feet of gas per day from 17.5 million the previous year as the Kambuna field ended its life.
The company also said it has focused its operations on developing its other assets, and it expects to begin completing sales from its Foum Draa and Sidi Moussa blocks, where costs have been farmed out, after commencing drilling in October 2013 and its first half 2014, respectively.
"The company has sufficient funds to meet its exploration and other commitments for 2013 but remains very tightly financed. The board is, accordingly, reviewing alternatives to strengthen the company's resources for 2014 and beyond and place it on a stronger footing to maintain its growth targets," Chief Executive Tony Craven Walker said in a statement.
Serica shares were down 1.1% to 22.25 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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