22nd May 2018 14:22
LONDON (Alliance News) - Zoltav Resources Inc said Tuesday it swung to a loss from a profit the year before as revenues fell on lower production rates.
For the year ended 2017, the Russian-focused oil & gas company had a pretax loss of GBP17.3 million from a GBP2.4 million profit the year before. The company's revenues decreased 11% to GBP21.7 million from GBP24.1 million the previous year.
Net production declined, in line with Zoltav's expectations, by 13% to 2.6 million barrels of oil equivalent from 3 million barrels of oil equivalent the year before. The is due to the Permian Basin drilling programme suspending during the year after several wells underperformed.
The company's natural gas production fell to 14.8 billions of cubic feet of gas from 16.8 billion of cubic feet of gas. Its oil and condensate production decreased to 122,962 barrels of oil to 163,967 barrels of oil.
Zoltav's "rigorous commitment to cost and operational efficiencies" led earnings before interest, tax, depreciation and amortisation increasing 5% to GBP10.8 million from GBP10.3 million. The company limited plant shut-downs and applied "new and improved" chemical processes in its gas treatment unit.
Independent Non-executive Chairman Lea Verny said: "We took the strategic decision in 2017 to transition the operational emphasis of the company from production to exploration, while continuing to generate cash from the Permian fields already in production. Zoltav believes there is potential to yield substantial additional reserves and production from the Carbonian and Devonian horizons at Bortovoy which, if proven, would have a transformational impact on the size of the Bortovoy asset.
"A considerable 3D seismic acquisition programme was undertaken in these horizons in 2017 and the exploration programme has continued to gather pace in the year to date including with the preliminary interpretation of data and the strengthening of the technical team in support of the work programme. We look forward to reporting further progress as the programme advances."
Shares in Zoltav Resources were untraded Tuesday but last closed at 20.35 pence each.
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