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LONDON (Alliance News) - Oil company Block Energy PLC on Thursday reported its maiden preliminary results following its AIM initial public offering in June, recording a significantly wider loss.
Shares in Block Energy closed up 9.4% at 2.90 pence each. The company's shares are down 29% since it listed.
For the year to June 30, Block Energy widened its pretax loss to GBP1.4 million from GBP290,000 reported for the same period a year earlier.
The company generated its maiden revenue in its most recently ended financial year of GBP133,000. Block Energy's administrative expenses, however, increased to GBP1.2 million from GBP281,000.
"Block Energy is a junior oil and gas company with the potential resource base of a mid-cap oil and gas company. The solid operations infrastructure we have established and the well-designed work programme we are implementing are big steps towards closing the valuation mismatch," said Paul Haywood, chief executive officer.
The company's cash position at year-end was GBP4.0 million, up from GBP215,000 the year before, thanks to the GBP5.0 million raised from its AIM listing.
Haywood added: "Specifically, the commencement of multi-well operations at Norio and the imminent West Rustavi work programme herald the beginning of another busy and exciting period for Block, one that promises much high impact news flow as we work to transform the company into a leading independent oil and gas producer with a market valuation to match."
As at June 30, Block Energy holds three operating licences, all in Georgia: 100% of Norio, 90% of Satskhenisi and 25% of West Rustavi.
Block Energy's portfolio of assets has 2P gross oil reserves of 2.5 million barrels with gross contingent oil resources of 72.9 million barrels of oil and 626 billion cubic square feet of gas.