22nd Apr 2016 09:12
LONDON (Alliance News) - Zoltav Resources Inc Friday reported a swing to a pretax loss for 2015 as an exceptional gain did not recur, but saw a rise in revenue due to higher production levels despite the weak ruble and a challenging market.
Zoltav is a Russia and the Commonwealth of Independent States focused oil and gas exploration and development company.
It reported a pretax loss of USD3.6 million, swung from a pretax profit of USD24.1 million in 2014, as in 2014 Zoltav's profit had been boosted by a one off USD35.0 million gain from an acquisition. Revenue rose to USD28.1 million from USD20.0 million.
This rise in revenue was despite the weakness of the Russian ruble against the dollar, helped by a 16% increase in daily production compared to 2014.
Zoltav said its Western Gas Plant on the Bortovoy Licence, south western Russia, operated at full capacity during the year production an average 8,853 barrels of oil equivalent per day, compared to 7,656 barrels the previous year.
The company said that its next target will be the development of the "highly promising" Devonian structure in the North Mokrousovskoye field, 13 kilometres from the Western Gas Plant, which it said will allow it to keep the plant at full capacity for "at least a further decade".
"Our team has worked tirelessly in 2015 to generate ongoing efficiencies at the Western Gas Plant that have enabled Zoltav to deliver its first profit from operations despite a challenging environment for oil and gas companies and despite a weak ruble against the US dollar. Improvements in both factors would likely in the future have a very positive corresponding impact on Zoltav's financial performance," said Executive Chairman Alastair Ferguson in a statement.
Shares in Zoltav Resources were down 2.6% at 39.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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