Independent Resources falls on wider losses, need for further funding

Full-year results at Independent Resources came as a disappointment on Tuesday, with losses coming in significantly wider on the back of the restructuring of the Rivara Gas Storage project.The oil and gas company also admitted that if the recently announced placing and open offer is not full subscribed for, then it will need additional funding to meet its future costs. If it can't raise sufficient funds via the placing or an alternative, it would be unlikely to continue as a going concern, it warned. It also said that in order to meet all of its licence commitments, it would need to raise further funds from additional sources, including securing farm-out partners for its projects. The group generated a loss of £3.34m for the 12-month period ended December 31st (2012: £1.82m), £1.51m was related to the Rivara restructuring following an earthquake in 2012. The group is currently involved in court proceedings relating to the Emilia Romagna region, which it has said will "not be a speedy process". Telling investors it was "getting back in control of our destiny", the firm said it anticipated the completion of the placing in the very near future, which it expects to provide it with the necessary funding to meet its short-term obligations. It has reduced its problems in Italy, strengthened its management team and re-positioned itself by working on a number of attractive opportunities that would provide the company with increasing exposure over time to hydrocarbon production. The share price had fallen 8.33% to 2.75p by 08:30.NR