UK Oil & Gas plc posted an impairment of £400,000 from its Turkey operations while group cash more than halved.
FINANCES
The company’s assets include 5% in onshore Avington field within PEDL070, currently shut in; 100% of Loxley gas discovery and Broadford Bridge oil discoveries,PEDL234; 10% in Horndean PL211; 85.635% in Horse Hill PEDL137 due to be farmed out to Pennpetro Energy.
UKOG also has a 50-50 joint venture on the Resan licence in Turkey.
For year ended 30 September 2023, revenues from oil sales totalled £1.5 million (2022: £1.8m), while gross profits remained at £300,000.
The impairment in Turkey followed a no show of commercial hydrocarbons in the Pinarova-1 well.
The group’s operating losses fell to £3.5m (£5.3m) while cash and cash equivalents more than halved to £1.9m (2022: £4.6m).
Non-current assets increased to £36.9m (£35.9m), including mainly capital expenditure on exploration and evaluation assets and the company’s UK hydrogen storage project.
Net cash outflow increased from operating activities rose to £2.9m (£2m) due to working capital movements and reduced operating cash flows from Horse Hill.
Post period, UKOG raised £1.9 million via a convertible loan and a £2m facility with RiverFort Global Opportunities PCC Ltd and YA II PN Ltd.
The company also reduced its shares from 32,539,926,104 ordinary shares of £0.0000001 on a 10:1 ratio to 3,253,992,610 ordinary shares of £0.000001 each.