(Alliance News) - Andalas Energy & Power PLC on Tuesday said it is exploring new opportunities after its loss narrowed in the first half of its current financial year.
The AIM-listed oil & gas company said its pretax loss for the six months to the end of October narrowed to USD528,000 from USD868,000 reported the year before. No revenue was generated in either period, Andalas noted.
The Isle of Man-based company said it continues to control its costs "very closely", and conserve cash to the "maximum extent possible" without preventing it from developing opportunities.
Andalas said it is seeking to develop an international exploration & production business focused on developing upstream assets in Indonesia and the UK.
In the UK there are two opportunities being pursued, Colter and Southern North Sea, Andalas said, while in Indonesia, there has been no movement in the stalled Bunga Mas deal.
In the first half, Andalas has entered into an operating services & option agreement in respect of the producing Betun-Selo KSO in Sumatra. By the end of the period, there was a fee debt of USD687,000 which Andalas said it is entitled to receive. The company noted that it had requested payment for USD83,000 of this fee debt.
At this stage, Andalas said it does not intend to exercise its option to drill a new well at Selo.
"The board believes the company is well positioned to pursue new exploration & production opportunities. In the meantime, it will seek opportunities to further its existing assets," said Non-Executive Chair Robert Arnott.
Andalas shares were trading 9.7% lower in London on Tuesday at 0.14 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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