LONDON (Alliance News) - Roxi Petroleum PLC Friday said it widened it losses in 2013 due to higher finance costs, but reported an increase in revenue, and said that sales of oil on a day-to-day basis now exceed its general and administrative expenses.
Roxi Petroleum reported a pretax loss of USD11.2 million in 2013, compared with a USD7.8 million loss in 2012, after booking USD4.5 million in finance costs compared with only USD956 million in 2012, and it also received a lower finance income gain.
However, revenue in the year rose to USD3.9 million, up from USD2.7 million a year earlier.
The central Asian oil and gas company with a focus on Kazakhstan said that for the first time, day-to-day production cash flow is greater than its day-to-day general and administrative costs, while it also has funding for its development costs for the next 12 months.
"Roxi's management expect production levels to continue to increase as existing wells are worked-over and their flow rates improved and new wells brought on stream," the company said in a statement.
The company said its drilled multiple well during the year, including its first deep well, and said it has seen a number of positive test results, and, in recent months, steadily growing production volumes.
Roxi said it is currently producing a total of 2,900 barrels of oil per day across its portfolio, of which 1,212 is net to Roxi. The company said it has not yet reached production at the rate of 2,000 barrel of oil per day net to Roxi, which it had hoped for at this time last year.
"For the coming year we set just one objective, which is to increase production from our existing assets to a rate of 2,300 barrels of oil per day," it said.
The company's strategic objective is to maximise production from the existing producing wells at each of its three principal contract areas - BNG, Galaz and Munaily.
Roxi holds a 58.41% interest in BNG contract area, a 34.22% interest in Galaz, and 58.41% interest in Munaily.
"The group is well placed to consolidate these advances over the next 12 months with further well tests and drilling planned together with an update of the company's reserves," said Chairman Clive Carver in a statement.
Roxi Petroleum said that in the remainder of 2014, it plans to drill a further five shallow wells at BNG and one deep well at Galaz. In the first half of 2015, Roxi said it plans to drill a further deep well at BNG.
Roxi Petroleum shares were up 5.9% at 4.50 pence Friday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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