LONDON (Alliance News) - Petroneft Resources PLC Friday said it significantly narrowed its first-half losses, while a fall in revenue was attributed to a 12% decrease in production.
The Russian oil production company reported a smaller pretax loss of USD2.7 million for the six months to June 30, compared with a USD9.7 million loss in the first-half of 2013, due to a significantly smaller foreign exchange loss on intra-group loans of only USD2.1 million, compared with USD6.4 million the prior year.
Revenue in the period fell to USD17.5 million, down from USD18.6 million, as production averaged as 2,163 barrels of oil equivalent per day, 12% lower than the 2,463 barrels its produced in the first-half of last year.
"The decrease was as a result of natural decline and the fact that no new production wells have been drilled since February 2013," the company said.
Petroneft said it sold 391,379 barrels of oil in the six month period, down from 438,350 barrels last year, but said the average oil price achieved increased to USD44.79, compared with USD42.48 the prior year.
Earlier this year, Petroneft completed the farm-out of Licence 61 in Russia to Oil India Ltd, and it will shortly re-commence drilling at its Tungolskove site in Licence 61 site as part of its fully funded multi-well drilling programme. Following that, the company re-commenced its drilling operations following the completion of the Licence 61 farmout.
Petroneft shares were trading 1.2% lower Friday morning at 6.35 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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