LONDON (Alliance News) - UAE Oil Services PLC on Monday reported a loss for the six months since its incorporation and said terms for the acquisition of oil services business OBN Group have been finalised.
From January 3 to June 30, UAE Oil Services recorded a loss of GBP531,559, equivalent to 0.53 pence per share, due to professional fees and setup costs.
The goal of the company is to acquire oil & gas support services businesses in the Middle East & North Africa, focusing initially on the United Arab Emirates.
To this end, it has now finalised the terms for its potential share-for-share acquisition of OBN, which operates in the United Arab Emirates. This acquisition constitutes a reverse takeover under AIM rules and, as such, its shares have been suspended since the deal was announced on September 17, lost closing at 550.00p.
As at June 30, UAE Oil Services' bank balance stood at GBP668,056. It raised GBP999,999 during the period from share issues.
"The main expense for the company is its legal and professional costs. The management intends to monitor and control this to be cost efficient and minimise its net loss before a suitable acquisition," said Chief Financial Officer Stephen Smedley.
"The board looks forward to providing further updates to shareholders in relation to the potential acquisition of the OBN Group," Smedley added.