30th May 2019 12:15
LONDON (Alliance News) - United Oil & Gas PLC on Thursday said its loss widened in 2018 due to administrative expenses, which included expenses from fundraising as well as exploration costs.
Shares in United Oil & Gas were down 5.0% at 2.85 pence at midday.
For 2018, United O&G's pretax loss totalled GBP810,987, widened from GBP593,414 in 2017. This loss entirely consisted of administrative expenses in both years, as it recorded no revenue in either year.
Administrative expenses included exploration costs from new ventures, the evaluation of possible acquisitions, and corporate expenses from fundraising. The company raised GBP5.5 million in total from fundraising in 2018, GBP2.5 million at 4.25p per share in April and GBP3 million at 5.5p per share in September.
Post year-end, in February, the company moved to London's AIM market from the Main Market. Then in March 2019 the company announced a farm-in option for an onshore licence in Benin, its first entry into the African market. The deal could see United O&G take 20% of a production sharing agreement.
"We are delighted to report on a year of considerable progress as we grow an exciting portfolio of exploration, appraisal and development assets. 2018 saw development at an operations level, through successful drilling in Italy and seismic and other development activity across our portfolio. It saw portfolio gains, most notably through success in our first competitive licencing round, with the acquisition of the Crown Discovery in UK Licencing Round 30. 2018 also saw additional strengthening of our technical and corporate team, as we gear up to take full advantage of what is an increasingly strong asset base. The progress made last year builds on United's already strong start and has been continued into 2019," said United Oil & Gas Chief Executive Brian Larkin.
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