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(Alliance News) - Pennpetro Energy PLC on Monday posted a widened first-half loss and said that it expects to generate revenue in the second half of 2019 from its first horizontal well.
The company, which is focused on the Gonzales oil field in the US state of Texas, also said that it intends to use its cash balances and cashflow from oil production to fund additional development of its lease interests in the field.
For the six months to June 30, Pennpetro recorded a pretax loss of USD929,000 versus USD457,000 loss in the year ago period.
The widened loss was attributed to increased operating and finance costs. Operating expenses jumped to USD645,000 from USD321,000, while finance costs rose to USD284,000 from USD136,000.
No revenue was generated in either financial periods.
The company said it will continue to focus on commencing full production at the COG No. 1-H well, acquire additional land leases and carry out a 3-D seismic survey of its land interests.
Pennpetro Energy shares were untraded in London on Tuesday.
By Tapan Panchal; tapanpanchal@alliancenews.com
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