LONDON (Alliance News) - Regal Petroleum PLC said on Tuesday said that despite "challenging" business environment in Ukraine, it made "very promising" progress, as it swung to profit over the year.
Pretax profit for 2017 came to USD2.3 million, compared with USD1.3 million loss in the prior year, as revenue grew to USD35.1 million from UDS25.7 million.
The AIM-listed oil firm said its administrative expenses rose year-on-year to UDS5.3 million from USD4.7 million.
Production in the year averaged to 2,800 barrels of oil equivalent per day, a 65% increase from 1,700 barrels the year before. This was a result of the "significant" contributions of the new MEX-109 well and the "successful" workover of the SV-2 well, Regal said.
MEX-109 well was put on production in June, while SV-2 well broght the first income in August.
Regal said MEX-GOL and SV fields produced an average 1,629 barrels in 2017, compared to the 1,321 barrels the year earlier.
The petroleum company reported cash totalling USD14.2 million at the end of the period, falling from USD20.0 million the year before. The group's short-term investments were USD16.0 million as at March 28.
Regal Chairman Chris Hopkinson said: "Whilst there are still challenges in the business environment in Ukraine, the situation is improving and the group is continuing to progress the development of its Ukrainian fields. After the operational successes of 2017 and the increased production output during the year, we are looking forward to achieving further successes in the development activities planned for 2018 and delivering a steadily increasing production and revenue stream in the future."
The stock was trading 6.9% higher at 22.97 pence per share on Tuesday.
