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(Alliance News) - Empyrean Energy PLC said on Friday that it swung to profit in its recently ended financial year and has received tax refunds, allowing it to meet operational funding requirements.
The oil & gas explorer made a USD143,000 pretax profit in the year ended March 31, up from a USD3.5 million loss last year. Although it generated no revenue, finance income for the year was USD1.1 million, finance expenses were USD2.6 million in financial 2018.
The company has also raised funds through a share placing, generating USD1.3 million and it has received tax refunds also totalling USD1.3 million.
On an operating perspective, financial 2019 was "successful on a number of fronts", Empyrean said. In Block 29/11 in China, audits found that the average oil-in place, which refers to the total oil content in a reservoir, was 884 million barrels of oil.
The Jade and Topaz prospects, which are part of Block 29/11, are estimated to have geological chances of success of 32% and 30% respectively.
In April, the company said it entered an agreement with Coro Energy PLC to receive USD10.5 million to finance most of the costs of a drilling programme in the Duyung PSC Project, Indonesia, which contains the Mako gas field. Empyrean has a 10% stake in Duyung.
The Sacramento Basin, California, was forced into temporary closure after water entered the well.
Empyrean wholly owns Block 29/11, has a 10% share in Duyung and in the Sacramento basin, it has a 25% holding in the Alvares gas prospect and a 30% stake in Dempsey.
Chief Executive Tom Kelly said: "We believe that the near-term combination of exploration and appraisal drilling at the Mako gas discovery in Indonesia, coupled with the enormous potential upside at our drill-ready Jade and Topaz conventional oil prospects make Empyrean a tantalising and unique exposure to the sector. We look forward to further progress on both of these exciting projects."
Shares in Empyrean were down 3.5% at 8.20 pence each in London on Friday afternoon.
