LONDON (Alliance News) - Leni Gas & Oil PLC Friday reported higher first-half revenue but said its pretax loss widened due to legal costs related to its legal case against Mediterranean Oil and Gas PLC.
The case was heard in the High Court in March but went against Leni Gas & Oil, with Mediterranean Oil and Gas awarded GBP1.2 million. Following legal advice, Leni Gas & Oil decided against appealing.
In a statement, Leni Gas & Oil said it made a GBP2.5 million pretax loss in the six months ended June 30, compared with a GBP1.4 million pretax loss in the corresponding period last year. Revenue increased to GBP3.2 million from GBP2.3 million, while administrative expenses increased to GBP2.0 million from GBP1.3 million.
"The first half of 2014 has been truly transformational at LGO as we have now clearly demonstrated the huge potential that the Goudron Field and our wider portfolio in Trinidad can deliver. The successful drilling of the first five of our thirty well program, and the impressive flow rates these new wells have achieved, illustrates the impact that modern drilling and completion practices will have on this field which holds up to 60 million barrels of contingent resources which we will seek to access over the coming years. The milestone of 1,000 barrels oil per day is also very significant for the company," Chief Executive Neil Ritson said in a statement.
"Goudron will remain our focus in 2014, but as we move into 2015 we expect to accelerate work on other elements of our portfolio, which also have significant untapped potential. Trinidad has all the right elements for the company to continue to grow rapidly and I look forward to reporting on that progress in due course," Ritson added.
Leni Gas & Oil shares Friday closed up 11% at 5.95 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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