LONDON (Alliance News) - Highlands Natural Resources PLC on Tuesday posted a widened loss on expenses during its first year of revenue generation.
In its financial year ended March 31, the oil & gas company's pretax loss was GBP4.0 million, 18% wider than its GBP3.4 million loss the year before.
The cause was a more than doubling of Highlands' administrative expenses to GBP6.9 million from GBP3.4 million the year before.
The company completed two of its wells at its East Denver Niobrara project in Colorado, generating revenue of GBP2.9 million.
"This has been a transformational period for Highlands and we are very excited to have reported our first revenues," said Highlands Chairman Robert Price.
Post year-end the company has secured a deal with its partners. The partners will fund 100% of future capital costs at the East Denver project, in return for which Highlands reduced its holding to a 7.5% net revenue in all wells at the East Denver project.
"The post year end refinancing deal announced for East Denver...will have a significant impact on both costs and revenue generation in the coming year," said Price.
"It will obviate the need for any additional capital expenditure on the project by the group in return for a lower income percentage per well," he added.
The company expects its cash flow to build over the next year.
Shares in Highlands Natural Resources were down 3.4% at 23.2 pence on Tuesday.