News Column

Falkland Oil & Gas Swings To Pretax Loss On Expenses

April 30, 2014

Tom McIvor

LONDON (Alliance News) - Falkland Oil & Gas Ltd Wednesday said it swung to a pretax loss in 2013 as increased expenses and a major foreign exchange gain in 2012 hit comparable figures in 2013.

The oil and gas exploration company, said it swung to a pretax loss of USD4.0 million from a pretax profit of USD1.1 million the previous year as total administrative expenses and loss from operations increased by 39% to USD6.4 million from USD4.6 million.

The company said its expenses increased as it continued its development towards major drilling in 2015.

Falkland Oil also said its 2012 figures saw a USD2.8 million foreign exchange gain, without which it would have also made a pretax loss in its previous year.

However, the company said its cash balances at December 31 were USD151.4 million and it is fully funded for a 5 well drilling programme starting in 2015.

The news comes after the company announced in February, that it had completed a 3D seismic survey at the company's Northern Area Licences with data expected to be available in the third quarter.

Falkland Oil & Gas shares were up 2.0% to 25.50 pence Wednesday.

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Source: Alliance News

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