(Alliance News) -Â Exploration and production company Nostrum Oil & Gas PLC on Tuesday posted a swing to loss for the first half of the year, and said it is still looking for a permanent chief executive.
Revenue for the six months to the end of June was USD66.2 million, nearly half the USD122.0 million posted a year ago. Cost of sales fell 20% to USD63.9 million.
The firm sank to a pretax loss of USD51.1 million from a profit of USD27.1 million a year ago.
"Our focused cost-management initiatives are significantly reducing our cost base and we have executed a successful well intervention and work-over programme which has reduced the expected rate of decline of production above expectation. Both these measures have, and will continue to, assist us in managing our liquidity effectively and our cash burn is currently very low," said Chief Executive Kaat Van Hecke.
She continued: "However, we remain exposed to low prices for our products and whilst the price of oil and related products has improved in the last few months, the price received for dry gas may remain at a relatively low level for the remainder of the year and possibly beyond."
Van Hecke, who took up the CEO role for the duration of Nostrum's strategic review process, will step down on August 31 as planned and resume her role as a non-executive director.
Nostrum is in the "final stages" of hiring a new CEO, but if this is not completed by the end of the month, van Hecke will hand over executive responsibilities to Executive Chair Atul Gupta on an interim basis.
An announcement on the new CEO will be made in due course, the firm added.
Shares in Nostrum Oil & Gas were down 2.9% at 11.38 pence in London on Tuesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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Nostrum Oil&gas (NOG)