Enegi Oil cuts losses and looks to the future
EXPLORATION company Enegi Oil cut its losses from more than £2.5m to £338,000 after a cost cutting drive which included the departure of three members of the board.
The AIM-listed Manchester-based group, which is focused on opportunities in Newfoundland, said it hoped to have more positive news for investors in the second half.
Executive chairman Alan Minty said: “The last six months has seen us get the company into position for the future and start to get back to doing what we should be doing, developing hydrocarbon assets.
“While the financial results don’t reflect the work that the Enegi team have undertaken and achieved in the last six months; we are now reaching a time when the results of this work are beginning to show through in other ways.
“We look forward to being able to share further positive news and operational updates with our shareholders and delivering them the value that our assets have the potential to provide.”
In the period under the review – the six months to the end of December 31 2009, Enegi raised £2.8m via two separate share placings to give it the resources to continue.
The company generated revenues of £101,000, up from zero in the same period the year before.
Looking ahead Mr Minty said: “The next six months will provide the group with the opportunity to generate revenue from Garden Hill South.
“While not currently able to provide a continuous revenue stream for the group, the belief of the board is that cyclical production can be generated.
“The board is also confident that the planned farm-in operation and subsequent work programme will significantly enhance the productivity of the well.
