LONDON (Alliance News) - Independent Resources PLC shares fell on Thursday after the company reflected on a frustrating year trying, and failing, to acquire an interest in a producing asset, but reported a narrower pretax loss in 2014.
Independent Resource shares were down 25% to 0.75 pence per share on Thursday morning, one of the worst performers in the AIM All-Share.
The oil and gas company, which has operations in Tunisia and Northern Italy, reported a GBP1.6 million pretax loss in 2014, significantly narrowing from a GBP3.0 million loss in 2013. The loss narrowed because a GBP1.5 million loss was recorded in 2013 in relation to the reorganisation of the Rivera gas storage facility in Italy, which was not repeated in 2014.
"During 2014, our objective of acquiring an interest in a producing asset in North Africa on reasonable terms was frustrated, not least by the volatility of underlying oil prices since the Autumn of 2014 which increased the potential risk of entering into a transaction which may not have been in the best long-term interests of shareholders," said Chairman Grayson Nash.
We believe that following the fall in oil prices, the environment is now more attractive for Independent Resources as a potential acquirer and we continue to examine a number of opportunities and to progress discussions with potential financial partners," he added.
The Rivera gas storage facility is currently being hampered by ongoing litigation issues which began in 2012 with the Italian Ministry of Economic Development.
"If the future court process can be navigated successfully, despite its protracted nature, the general environment in Italy now appears to be becoming more positive for a project of this kind," said the company.
The company is also in talks with third parties about farming down its interests in the Ksar Hadada project in Tunisia.
"While the speed of this process has understandably been influenced by the volatility of oil prices and the changing political and security situation in Tunisia and across North Africa, the licence remains economically viable at prices substantially below today's prices and we remain in discussions with a number of parties regarding investment," said Independent Resources.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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