LONDON (Alliance News) - Independent Resources PLC Monday said its losses widened in the 15 months to the end of December, while it said it needs to secure its recently proposed funding to meet all of its licence commitments and support operations over the next 12 months.
The group said it is likely to require additional sources of funding, as well, including securing farm out partners for its projects.
The company said that it will have enough cash to support operations and the preparatory work in Ksar Hadada permit onshore Tunisia over the next 12 months if its recent open offer of shares is fully subscribed. Last month the company announced a placing and open offer to raise up to GBP2.75 million of additional funds key to its survival, with the issue up to 91.9 million new shares at 3 pence each.
Independent Resources shares were down 4.0% at 3.00 pence Monday morning.
Independent Resources is set to become the operator of the Ksar Hadada permit, a move that will turn it into an oil and gas producer. It will take an 86.3% working interest in the permit.
"In the event that the placing and open offer is not fully subscribed, the group will need additional funding to meet future costs. If the group is unable to raise sufficient funds then the group is unlikely to be able to continue as a going concern," the company said in a statement.
In a statement reporting on its financial performance for the 15 months ended December 31, 2013, the company said its pretax loss widened to GBP3.3 million, compared with GBP1.8 million in the 12 months to September 30, 2012, largely due to costs relating to the restructuring of its Rivara gas storage operations in Italy, increased administration costs, and costs relating to potential acquisitions.
The company had to reorganise its Rivara gas storage operations after the site's environmental impact assessment approval was denied at a local level following complaints from local residents following an earthquake in May 2012. It spent GBP1.5 million in costs during its last financial year contesting the decision, which it said remains stalled pending resolution of court processes.
"The 15 month period... has been a real challenge for the company. It has taken the period since then to reduce the Italian problems to scale, get a grip on the Tunisian issues, strengthen the management of the company and refocus our strategy" the company said in a statement.
"As part of this strategic re-positioning we have been working on a number of attractive opportunities that would provide the company with increasing exposure over time to hydrocarbon production in our area of interest," it added.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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