23rd May 2014 11:22
LONDON (Alliance News) - Zoltav Resources Inc Friday said it expects to complete its acquisition of Royal Atlantic Energy by the end of June while saying its pretax losses widened in 2013 as operating expenses increased in order to help develop the Koltogor Licence in Russia
The oil and gas exploration and development company, which is yet to produce any revenues, said its pretax loss widened to USD4.4 million from USD3.5 million the previous year.
The company said its losses increased due to a 26% jump in operating expenses to USD4.4 million from USD3.5 million as the company focused on developing the Koltogor Licence in Western Siberia after acquiring the project earlier in 2013.
During the year, the company completed a major 3D seismic acquisition programme over the Koltogor Licence, confirmed commerciality from its Well 141 site on the licence after testing, negotiated licence extensions, and tested the Well 103 site, recovering oil from both a Jurassic formation and a shale formation.
Earlier in May, the company announced that data from the 3D seismic programme is now being processed, and the results will determine its appraisal drilling programme for the 2015 and 2016 drilling season.
In addition, at the end of 2013, Zoltav Resources announced proposals for its second major acquisition, Royal Atlantic Energy Ltd, which holds a 3,215 square kilometre region containing a number of gas fields in Russia.
On Friday, the company said it expects to complete the new acquisition by the end of the second quarter of 2014.
Zoltav Resources shares were up 4.6% to 108.75 pence on Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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