LONDON (Alliance News) - Matra Petroleum PLC Monday said it swung to a pretax profit in 2013 as a result of cash from its Sokolovskoe oil field disposal in Russia during the period.
The US-focused oil and gas investment company, which is currently proposing to cancel the admission of the company's shares trading on AIM in order to complete a US acquisition, said it swung to a pretax profit of USD6.0 million rather than a pretax loss of USD4.8 million the previous year.
Matra made a USD12.6 million gain on the disposal of its Sokolovskoe oil field during 2013, which occurred after a seismic survey at the field in early 2013 and an extensive review which concluded that the disposal of the licence represented good value for shareholders.
However the company said that its pretax loss from continuing operations widened to USD6.6 million from USD3.4 million as higher expenses and foreign exchange losses hit the company.
The company, which is yet to produce any revenues, said its increased losses were mainly down to a 56% increase in administrative expenses to USD4.4 million from USD2.8 million and a foreign exchange loss of USD2.0 million.
Matra Petroleum said its increase in administrative fees was largely due to legal and professional costs and travel costs both related to the acquisition of the new assets.
The company added that it now plans to drill 60 new wells and complete 70 workovers of previously producing wells during 2014.
The news comes a week after the company proposed to cancel its shares trading on AIM in order to complete the reverse takeover of PG-M International LLC.
Matra Petroleum said last week that it has secured an extension to its option to acquire the 50% interest in PG-M until May 2, which should give it time to effect the cancellation of its trading on AIM, following which it can proceed to complete the acquisition as a private company.
A general meeting has now been planned for April 23 for the purpose of considering a special resolution to approve the cancellation of admission of the company's ordinary shares to trading on AIM.
Matra Petroleum shares remain suspended at 0.800 pence Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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