Enegi’s losses widen as it raises £900,000
MANCHESTER-based oil exploration firm Enegi Oil has reported half year losses of £1.45m but has lined up a £900,000 loan and says 2013 could be the most significant in the company’s history.
The reported loss for the six months to the end of December 2012 has widened by £587,000 since the same period last year.
Enegi said this was due to it increasing the scope of its activities during the period.
The business is drilling for oil in Newfoundland and looking at shale gas prospects in Ireland. It also has projects underway in the North Sea and Dead Sea in Jordan.
Group net assets were £6m at 31st December 2012 (2011: £5.2m). To accelerate the development of short term production projects, the company is in the process of securing a £900,000 loan with with Dutchess Capital.
Under the terms of the loan Enegi will issue shares which will be held in escrow by Dutchess as security. The company will have the option to utilise these to pay back Dutchess at a 15% premium to the loan. Enegi said it expects to repay this loan within the next six months.
Chief executive Alan Minty said: “This has been a period of unprecedented activity for the company in progressing our existing assets, adding to our portfolio and continuing to evaluate further opportunities. Excellent progress has been made on our existing portfolio in Newfoundland and Ireland and we are delighted to have entered into the North Sea and Jordan and believe these projects offer excellent potential.”
He added: “Through its strategy and the team involved, the company has transformed itself over the last 18 months and expects to continue that in the coming period. This year could prove to be the most significant in the company’s history and we look forward to updating our shareholders as we continue to develop our portfolio.”
