LONDON (Alliance News) - LGO Energy PLC Tuesday said its pretax loss widened in 2014 as a rise in revenue was offset by increased costs as the company continues to rapidly ramp-up production from the Goudron field in Trinidad in 2015.
The oil and gas company operating in Trinidad and Spain reported a GBP5.1 million pretax loss in 2014, widening from a GBP2.8 million loss in 2013, despite revenue increasing to GBP9.2 million from GBP5.9 million.
Administrative expenses rose to GBP4.9 million from GBP2.7 million, share-based payments doubled to GBP824,000 from GBP412,000, and amortisation and depreciation totalled GBP1.5 million compared to only GBP324,000 a year earlier. Finance charges rose to GBP1.3 million from GBP342,000, partially offset by other income of GBP408,000 from nil in 2013.
Oil sales totalled 203,712 barrels net to LGO, almost double last year's 111,774 barrels and the company said it expects to "maintain this trend" through 2015.
A total of eight new wells were drilled on the Goudron field in 2014, of which seven were hooked up and producing by year end 2014. Goudron production in December averaged 2,089 barrels of oil per day with fourth quarter production from the field averaging 1,031 barrels per day.
LGO is planning on drilling at least seven new wells in 2015 on the Goudron field and will work to secure a long-term, low-cost debt facility to fund the wider development of Goudron. It will also "maintain" its Spanish portfolio, whilst seeking further opportunities to expand its existing asset base.
"LGO has faced many challenges, to grow in a market which has been contracting and where revenues have been under severe pressure due to the commodity price collapse. However, the LGO team have responded outstandingly well to these challenges and we have delivered significant, countercyclical, growth in production, revenue and gross profit," said Chief executive Neil Ritson.
LGO shares were down 1.7% to 3.34 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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