LONDON (Alliance News) - Frontera Resources Corp Tuesday said its pretax loss was slightly wider in 2014 despite a small rise in revenue and said it expects "continued value creation" in 2015.
The oil and gas exploration company reported a USD12.5 million pretax loss in 2014, slightly wider than the USD11.2 million loss in 2013 as a small rise in revenue to USD6.4 million from USD6.1 million was offset by as rise in interest expense to USD5.5 million from USD3.8 million.
"During 2014, Frontera continued to invest in a focused manner, primarily related to our ongoing work at the Mtsare Khevi Gas Complex and the Taribani Field Complex," said Frontera.
Oil production totalled 61,000 barrels in 2014, all coming from Taribani whilst gas production from Mtsare Khevi, which began in April, totalled 188 million cubic feet. Both projects are in Georgia, and drilling is still ongoing at Mtsare Khevi.
The Mtstare Khevi gas complex is thought to have around 11 trillion cubic feet of gas in place, with 9 trillion cubic feet being recoverable, according to an internal estimates made by the company.
Frontera began operations at the Taribani field complex during the first quarter of 2015. The company farmed out 50% of the project to Varang Exploration Ltd in April and as part of the agreement, phase one of the project requires the completion of three existing wells, costing around USD17 million over the next 18 months, said Frontera.
Frontera also will drill five new wells at the Mirzaani field in Georgia in 2015.
"This work has positioned us well for continued value creation for our company throughout the current year. In addition, because of our progress in 2014, our ongoing work will also continue to provide the basis for enhanced domestic economic development and energy independence in Georgia and regional Eastern European energy markets during the year ahead and beyond," said Chairman Steve Nicandros.
Frontera shares were down 5.4% to 0.7525 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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