LONDON (Alliance News) - Hardy Oil & Gas PLC Thursday said its pretax loss significantly widened in the last financial year on the back of a significant write-down of exploration costs related to the D3 block in India, which it relinquished in the period.
The oil and gas company reported a USD24.5 million pretax loss for the year ended March 31, 2015, significantly widening from a USD4.8 million loss a year earlier, after Hardy booked USD22.5 million in unsuccessful exploration costs.
The company, which does not generate any revenue, said the costs were related to the D3 block in India, which it relinquished in the period. That was partially offset by administrative costs almost halving to USD3.8 million from USD6.2 million.
"We made considerable progress on our near-term production project at PY-3. Until the objective of recommencement of PY-3 production is achieved, management will maintain tight control of the Group's administrative expenditure," it said in a statement.
The PY-3 project on the Cauvery basin, in which Hardy holds an 18% interest, is being developed to hit production in 2016. Hardy is currently focusing on securing stakeholder approvals for the project.
"We have clear deliverables for each asset and management are fully accountable for the implementation of the agreed plans," it said in a statement.
Hardy shares fell 2.6% to 37.00 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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