Losses grow wider at Regal
REGAL PETROLEUM, the oil and gas group, reported a widening first-half net loss yesterday, but said it was expecting improved earnings for the next year as funding problems at the group have been resolved.
The firm reported a net loss for the six months to the end of June of $7.57m (£4.59m) compared with $5.26m last year.
It added that it expects to increase production to over 3,000 barrels of oil equivalent per day (boepd) by the end of 2009 from an average of 1,170 boepd in the first half.
The company said the outlook for its second half is encouraging, as funding uncertainty was “a significant contributor to the share price decline” in the first half.
Regal raised $105m in a share sale in June after talks to raise debt failed.
Chief executive David Greer said the group was “very grateful” to the investors who had stuck with the group, and said they would soon be rewarded with a financial return.
He added that the group was not looking to make acquisitions with its new “healthy cash position,” but would not rule out discussions if there was an opportunity to merge with companies “with a similar ideology”. He added: “But we are very much focused on seeking out new potential in the Ukraine.”
He said that the falling price of oil made it a tough time for the industry, but that Regal was in “a position to grow”.