LONDON (Alliance News) - Gulfsands Petroleum PLC Friday said its pretax loss narrowed slightly in 2013 as a reduction in costs offset a fall in revenues.
The oil-and-gas exploration and production company with operations in the Middle East and North Africa said its pretax loss narrowed slightly to USD26.8 million from USD27.0 million as the company's cost of sales reduced 39.7% to USD4.2 million from USD6.9 million.
While the company's revenues fell 22% to USD4.4 million from USD5.6 million as production decreased 27% to 175 barrels of oil equivalent from 239 barrels as a result of temporary stoppages, repairs, equipment failures and natural field production declines.
However, Gulfsands said the reduction in cost of sales allowed it to swing to a gross profit before expenses.
The company said its general administrative expenses fell 37% to USD10.4 million from USD16.6 million but its exploration write-off costs increased 74% to USD12.3 million from USD7.1 million.
Gulfsands said it is currently preparing for a tender of a 106 kilometre 2D seismic programme over two separate areas of the Chorbane permit, offshore Tunisia, which it expects to be completed during the second quarter of 2014 with seismic acquisition to commence after receiving the permit.
The company added that it is also planning seismic programmes in Colombia and is continuing to pursue new business opportunities in existing countries of operation.
Gulfsand Petroleum shares were down 0.7% to 40.70 pence.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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