Losses widen at Enegi
MANCHESTER-based oil & gas company Enegi has announced that it has received approval to begin the final stage of a work-over programme at its most advanced well, the PaP#1 well at its onshore Garden Hill South site in Newfoundland.
The company, which this morning announced widened pre-tax losses of £1.5m for the year to June 30 (2010: £1.3m), said that approval had been delayed due to disputes with its farm-in partner, but that work was now ready to start.
It said that losses widened due to increased administrative expenses, but that it finished the year with increased net assets of £6.1m (2010: £4.5m). This was partly due to a £1.4m fundraising exercise and the fact that it no longer has to pay £1.5m in outstanding balances which were due to be paid to a related party during the year. It also raised £456,000 through the sale of “non-core” assets.
Chairman Alan Minty said the firm had been successful in its strategy of spreading risk during the course of the year, particularly through gaining an onshore licence for a shale project at the Clare Basin in the west of Ireland and through its investment in buoy technology.
It also said the termination of its farm-in agreement at in Newfouldand “will, in the longer term, generate significant additional value for shareholders because self-financing the next phase of activity will result in a greater attribution of value”.
