Ruspetro Share News (RPO)

Independent oil and gas development and production company Ruspetro failed to impress with its full-year results, which included a three per cent increase in average production but a four per cent decline in proven reserves. Production in the year averaged 4,797 barrels of oil equivalent per day (boepd), compared to average production in 2012 of 4,639 boepd, resulting from successful drilling activity and the implementation of water-flooding to reduce well decline rates.In 2013, only three wells were drilled and these were completed in the first quarter. Significantly, fourth quarter 2013 production averaged 4,010 boepd, a decline of 31.5% compared to a 5,856 boepd average in the fourth quarter of 2012, due to reduced condensate production from its Palayanovo licence. Revenue for the year rose from £76.23m to £79.85m, but losses widened significantly from £27.28m to £74.24m, hit by higher finance costs and other expenses. Chief Executive Officer, John Conlin, said: "2013 has been a necessary year of reassessment for Ruspetro. During this period we have successfully restructured our debt, raised non-dilutive financing, strengthened our leadership and technical teams, and are therefore in a position to restart development drilling. "Building on our technical partnership with Schlumberger, and the positive effect of the Federal MET relief on our production economics, we are confident that Ruspetro is well positioned for the future." NR