Losses decline at Dublin-listed Petroneft
Dublin and London-listed oil and exploration company Petroneft has seen its losses decline to $3.2m (€2.7m) in 2017 compared to a loss of $5.4m (€4.6m) in 2016.
The company, which operates in the Tomsk Oblast, Russia, also reported a decline in revenue to $1.7m from $2.3m in 2016, this was despite production for the year “ahead of expectations,” according to its annual results statement for 2017.
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Petroneft said that it has implemented a range of cost cutting measures including salary deferrals and reductions by the board and senior management.
Production for the year was 2,237 barrels per day, compared to 2,707 barrels per day in 2016, which it said reflected a natural decline.
No new production wells were drilled during the year, and this represents a decline of 17pc from 2016 production, the company said.
Looking forwards, the company said that cash-flow from operations at its licence 61 has been higher than forecast so far in 2018 due to the continued strong performance of the horizontal wells at South Arbuzovskoye, the recent very positive improvement in oil prices and significant reduction the company has achieved in operating expenses and overhead costs.
"We will do everything possible to continue this positive trend as we go forward," David Golder, chairman of Petroneft, said.
"Our industry is continuing to experience unstable times but we have future development targets such as the West Lineynoye L-8 Lobe and Sibkrayevskoye that will be profitable even at reduced oil prices."
Earlier this year the company announced that it had agreed a loan facility for up to US$2m (€1.6m) with Swedish company Petrogrand.
The loan facility, which will mature at the end of this year, will be used for general corporate purposes and to finance a potential drilling programme in 2018, the company said.