(Alliance News) - Prospex Oil & Gas PLC's shares tumbled on Monday after it reported a widened first half loss.
The exploration investment company's stock was trading 21% lower at 0.091 pence apiece in London on Monday morning, giving Prospex a market capitalisation of GBP1.4 million.
Prospex said that its share price does not reflect the "progress made to date" and that the shareholders' total equity value of investments, which stayed broadly flat at GBP6.3 million, is more representative of its performance.
In the six months to June 30, Prospex reported a widened pretax loss of GBP680,906 from GBP540,761.
Prospex booked a GBP207,999 loss on the revaluation of investments, rising more than tenfold from GBP20,553 in the first half of 2018. Administrative expenses fell by 10%, however, to GBP484,713 from GBP538,680.
The company raised GBP800,000 through the placing of 400.0 million shares during the recent period to fund its portion of the costs in the 2019 Suceava work programme in Romania. Production at the Bainet field in the project "continues in line with expectations", though the company reported in July that drilling at the Bainet-2 well found no commercially recoverable hydrocarbons.
Turning to its interests in Italy, the onshore Podere Gallina permit is on track for maiden gas production in 2020, Prospex said.
In Spain, the company is "working towards an informed decision" of whether to drill in the Tesorillo gas project and increase its stake to just under 50%. Prospex currently has a 15% holding in the project.
Non-Executive Chair Bill Smith said: "With a pipeline of prospects already identified, work programmes underway to de-risk these to the point of drilling, and production on course to commence at Selva, there remains considerable scope across our portfolio of projects to drive future financial performance. In tandem with this, we continue to evaluate new ventures which match our investment criteria."
