(Alliance News) - Columbus Energy Resources PLC on Wednesday said it narrowed its first half loss but revenue slipped year-on-year as oil prices fell.
In the six months to June 30, Columbus made a pretax loss of GBP1.4 million, improved from GBP2.5 million in the first half of 2018, on a fall in expenses. Revenue sunk by 5.8% to GBP3.4 million from GBP3.6 million. The company attributed this to oil prices which fell by 5.8% in the same time frame.
Average realised oil price in the first half was US57.60 per barrel versus USD61.17 per barrel in the first half of last year. The company's oil sales did rise, by 3.7%, however, to 92,154 barrels from 88,830 barrels.
Cutbacks trimmed administrative expenses by 12% to GBP1.5 million from GBP1.7 million and costs of meeting the company's commitments in Spain fell sharply to GBP126,000 from GBP637,000, Columbus said.
Last year, Columbus described its issues in Spain as a "continual source of frustration" due to the "slow pace" at which the authorities have moved to progress the decommissioning of the La Lora concession.
Turning to production, Columbus averaged 561 barrels of oil per day, up 16% year-on-year from 485 barrels.
Columbus said it changed its production strategy early into 2019 after encountering challenging market conditions internationally and in its operations in Trinidad. The company said that its drive to increase production across the whole of its portfolio became counter-productive as oil prices being locked in the range of USD50 to USD60 per barrel did not reward an "aggressive approach to incremental wellwork".
Columbus also added that it is in "exclusive discussions" for the award of an onshore concession in a South American country.
Looking ahead, the company said its focus for the second half of the year will be to secure the concession. It also aims to commence drilling in the South West Peninsula project, Trinidad and further the carbon dioxide pilot project alongside Predator Oil & Gas Ltd.
Executive Chair Lee Koot said: "The first half of 2019 has seen Columbus secure its operating base and set itself for a busy second half of the year. The company expects to bring to fruition a number of projects, in particular the drilling of an exploration well in the South West Peninsula, the commencement of the Inniss-Trinity carbon dioxide project and announcement of a new country entry. We look forward to an exciting second half of 2019."
Shares in Columbus were 3.0% higher at 3.40 pence each in London on Wednesday morning.
