24th Sep 2015 10:37
LONDON (Alliance News) - Mediterranean-focused upstream oil and gas company Sound Oil PLC on Thursday said its pretax loss widened in the first half due to a foreign exchange loss as it ramps up its operations ahead of starting production.
The company said is pretax loss for the six months to the end of June was GBP3.9 million, compared to a GBP2.0 million loss a year earlier, as its revenue came in broadly flat at GBP478,000 against GBP490,000. The loss was driven by the group booking a GBP2.0 million foreign exchange loss in the half.
Sound Oil secured the production concession for the Casa Tonetto project in the half and signed a gas sales agreement with Shell Energy Italia. It expects commercial production from the site to start by the end of 2015. Ongoing production from its Rapagnano project, also in Italy but for which it did not provide specific production figures, is covering the majority of its cost base in the country, it said.
The group said it is well-positioned despite the fall in the oil price and the tough conditions in global oil and gas markets and is confident in its portfolio of assets in Italy and in Morocco.
Shares in the company were down 4.3% to 14.00 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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