IGas Energy plc’s revenues halved to £10.5 million during the six months to June 2020 compared with the same period last year of £22.1 million.
The oil and gas company, which recently acquired geothermal developer GT Energy, also announced it would also consider adding new technologies to its existing business.
Interim results showing EBITDA at £2.2 million (H1 2019: £7.7m) and net debt increased to £11.2m from £5.9m in H1 2019.
Losses, after a non-cash impairment charge of £34.6m largely due to the reduction in oil price, stood at £30m compared with £0.8m for H1 2019.
Cash and cash equivalents were recorded at £2.6m compared with £14.4m for the first six months of 2019.
IGas net production averaged 1,940 barrels of oil equivalent per day (boepd) in H1 2020 (H1 2019: 2,360 boepd) principally due to the company’s decision to shut-in sites and increase cash flow following the fall in oil prices during Q2 and economic disruption.
Five fields remain shut in and under review.
A company statement read: “We are still expecting average net production for the year to be within the 1,850 – 2,050 boepd range, with underlying cash operating costs per boe anticipated to be $34/boe (based on an exchange rate of £1:$1.30).
“We have continued to progress projects in our core conventional business which have the potential to add significant value to the company and our shareholders.
“These include production uplift opportunities, such as water injection (Scampton North and Welton) and in wellbore production optimisation projects.”
CEO, Stephen Bowler, added: “It is testament to the resilience of our workforce that in spite of this, we have continued to achieve solid results in our production business, delivered the Scampton Waterflood project on budget and schedule and completed a significant transaction with the acquisition of the UK geothermal developer, GT Energy.
“Our core conventional business is the driver of our future diversification and we will continue to exploit the potential that exists in our core assets and ensure we continue to invest to protect that business as oil prices improve.
“We will also consider other new technologies that complement our existing business, as we move forward.”
Water injection at Scampton North will increase oil production, and the in-field pipeline and a new processing facility at the Scampton North C-Site will provide greater efficiency and environmental improvements by reducing venting, the need to truck water to the Welton Gathering Centre, as well as increasing the amount of gas available for power generation.