Star Phoenix narrows net loss after offloading Trinidad operations

(Sharecast News) - Trinidad and Indonesia-focussed oil and gas company Star Phoenix reported revenues from upstream operations of $5.4m in its first half on Monday, down from $6.4m year-on-year, and of $0.03m from oilfield services, falling from $0.6m.
The AIM-traded firm reported an impairment of $2.1m for the six month period ended 31 December, which was recognised against its rigs, and said cash balances stood at $2.3m at period end, down from $3.2m year-on-year.

An improved financial performance was reported, with a "materially reduced" net loss after tax of $5.5m, down from $35.9m year-on-year.

It noted that during the half-year, it signed an agreement for the sale of its Trinidad subsidiary, in exchange for offsetting all outstanding debt and payables and a cash consideration of $2.5m.

Closing of the transaction was now underway, the board said, with "all key completion conditions" in place.

Upon completion, the company said its indebtedness would be fully extinguished.

As part of its restructuring, its name was changed to Star Phoenix Group from Range Resources, a capital consolidation was completed, and its shares were voluntarily delisted from the Australian Stock Exchange.

A ?0.7m equity placing was completed, and a further ?0.5m placing was now underway.

"The company continues to review options for its rigs business and associated equipment, and its Indonesia interest," the board said in its statement.

"The company continues to evaluate new strategic business opportunities in various sectors."

At 1011 GMT, shares in Star Phoenix Group were down 11.11% at 1.2p.