21st May 2014 12:23
LONDON (Alliance News) - Sound Oil PLC Wednesday reported a bigger loss in 2013, due to higher exploration and development costs.
The Italy-focused oil and gas firm reported a pretax loss of GBP6.9 million in 2013, compared with a loss of GBP4.8 million the prior year, due to operating costs and a GBP2.6 million increase in exploration and development costs in the year, offsetting a GBP560,000 reduction in administrative expenses.
Sound Oil's net loss in the period of GBP6.9million was lower than in 2012, however, when it booked a huge loss on the disposal of its discontinued operations, resulting in a net loss of GBP13.7 million in 2012.
In 2013, the group also reported its first revenues, of GBP482,000.
"We are continuing our strategy," Chief Executive Officer James Parsons said. "In Italy this involves continuing to drill, at a minimum, two material wells every year whilst focusing our financial and human resources on game-changing assets such as Badile."
"The combination of the introduction of an institutional investor and the farm-in on Nervesa, both of which we expect to close during June, positions our company to fully exploit the potential of our assets," Parsons added. Nervesa is Sound Oil's flagship asset, located in northeastern Italy.
Sound Oil shares were trading 2.5% lower Wednesday afternoon, at 8.10 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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