(Alliance News) - UK Oil & Gas PLC on Friday reported a slump in revenue, whilst progress at certain projects offers a more positive outlook.
The London-based energy exploration and production company said in the six-months that ended March 31, pretax loss was largely unchanged from the previous year at GBP1.4 million.
Revenue declined 30% to GBP627,000 from GBP890,000, while administrative expenses fell 24% to GBP1.3 million from GBP1.7 million.
Cash and cash equivalents held by the company dropped 58% to GBP952,000 from GBP2.3 million.
In addition, the company issued an update following completion of a field resource report conducted at the Horndean field in Texas, in which UKOG holds a 10% non-operated interest.
The report was carried out by the oil & gas reserve estimation and valuations consultancy firm DeGolyer & MacNaughton.
Findings revealed a 22% increase in average field daily production in 2023 compared with the year before.
UKOG's net reserves and contingent resources increased to 186,200 barrels, up 3.9% from 179,200 barrels.
The company's net share of Horndean production revenues rose to GBP297,000 from GBP287,000, with net earnings after costs rising to GBP147,000 from GBP136,000.
Improvements at the site came about after the installation of new electric surface pumps in 2022 which allowed for greater production rates with lower power consumption.
In other news, yesterday UKOG said its planned hydrogen storage facility in Dorset, England received a letter of support from SGN Ltd.
SGN is the operator of the planned hydrogen transmission line which would link UKOG's storage site with the Solent Cluster, Southern England, and the UK wide Project Union hydrogen grid.
Chief Executive Officer Stephen Sanderson commented: "It is a further key step for our Dorset hydrogen storage project that SGN, the hydrogen pipeline operator, recognise the project as essential for decarbonising the Solent Cluster and Southern England.
"The LOS and mutually advantageous joint cooperation will be essential for our application in the first government hydrogen storage allocation round".
Financial support from the UK government requires such LOS to demonstrate that the development of storage is occurring in tandem with pipeline connections.
UK Oil & Gas shares were up 12% to 0.019 pence each in London on Friday afternoon.
By Elijah Dale, Alliance News reporter
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Uk Oil & Gas (UKOG)