By BFN News | 07:17 AM | Wednesday 24 December, 2014
Independent oil and gas company Enegi Oil posts a pre-tax loss of £4,859,000 for the year to the end of June - up from £3,115,000 last time. The company says the main area of expense has been the continuing development of the marginal field initiative. The loss for the year includes £301,000 of finance costs associated with concluding financing arrangements with Dutchess Capital and Shard Capital Management as well as an exceptional charge of £1,150,000 (including the effect of foreign exchange) for an impairment against the carrying value of the Group's Canadian assets. This was deemed necessary due to the recent movement in the oil price. The loss also includes a charge of £491,000 which represents the current fair value of the equity swap with YA Global at the current share price. Should the share price improve in the future the value realised by the Company will increase. Intangible fixed assets included additions of £899,000 that related to development work performed on the engineering solutions that form part of the marginal field initiative. Earlier this month, the company agreed with Shard Capital Management to extend the period of repayment for the loan that was agreed in 2013, for a further 6 months. The arrangement for the extension of the loan included an addition to the principal of £200,000 which the Company will use over the coming months and the issuance to Shard Capital Management of 10,000,000 warrants, exercisable at a price of 2.3p over the next 24 months. Chief executive Alan Minty said: "The period under review has undeniably been challenging for the Company. However, there is no doubt that the potential scale of our marginal field initiative is very significant. Whilst it has taken time and considerable effort to establish the foundations of this venture we are very confident that we are nearing the end of that phase and that we will see a considerable upturn in activity once it is completed. "As a company we are pursuing a strategy which we believe is highly appropriate at this time in light of market conditions and industry sentiment and believe the outlook for the Company remains very good." Story provided by StockMarketWire.
distributed by