LONDON (Alliance News) - Northern Petroleum PLC shares were trading lower on Wednesday despite the company narrowing its loss in the first half of 2015 as it continues to progress a large portfolio of assets.
Northern Petroleum shares were down 17% to 3.84 pence per share on Wednesday.
The oil company with assets in Italy and Canada reported a USD2.6 million pretax loss in the first six months of 2015, narrowing from a USD3.8 million loss a year earlier as revenue dropped to only USD223,000 from USD1.1 million.
Despite the revenue drop, the loss narrowed on lower administrative costs, operating expenses and because the company booked USD814,000 in other income compared to none a year ago.
In Italy, the company is preparing an environmental submission for an appraisal well on its wholly-owned Giove discovery, which will be drilled within the next 12 to 18 months. It also plans to acquire 3D seismic for its permits in the southern Adriatic, including the Cygnus prospect, in the third quarter of 2016.
The exploration programme being conducted by Royal Dutch Shell PLC on the Cascina Alberto permit onshore northern Italy, which contains the Gattinara prospect, has begun and work is due to start shortly on the five new wells across the permits.
A farm out of the Vesta prospect, also in Italy and containing two large prospective horizons analogous to the nearby producing Vega oil field, is now being instigated, it said.
In Canada, the company said the 100/16-19 well is producing at around 25.0 barrels of oil per day, and the company is waiting for the results of the pipeline survey by local infrastructure operator before production can commence on the high rate 102/15-23 well.
Northern Petroleum is looking at further acquisition opportunities in Canada, it said.
"Now is the time to build and execute a work programme across our Italian exploration and appraisal assets. Any one of Giove, Cygnus, Cascina Alberto and Vesta will provide significant upside for shareholders upon success. The Canadian development and production acreage can provide funding for the company and, in the medium term, has the ability to grow core value in its own right, especially if combined with other assets to create operating synergies," it said.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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