United Oil & Gas plc’s swung to a post-tax loss of $20.4 million while profits halved during a “transitional” 2023.
OPPORTUNITIES
The company’s “challenging” year was marked by aborted talks on selling its 22% interest in Abu Sennan onshore Egypt, leading to an $3.8m default notice and withdrawal from the licence.
United also exited central North Sea licence P2519, containing the Maria discovery, after potential buyer Quattro Energy failed to raise £5.7m. Expiry of the licence resulted in a $1.1m write off.
Full year results showed group revenue from discontinued operations fell to $11.6m (2022: $15.8m) along with gross profits to $6.2m ($12.9m).
Net loss totalled $16.5m ($5.6m profit).
Group cash as at 31 December 2023 amounted to $2m with net cash of $800,000 ($1.4m and net debt of $1.5m).
Administrative expenses rose to $4.2m ($3.6m restated) including foreign exchange losses of $1.4m ($1.1m). The company is reviewing options to reduce costs.
United said it had streamlined its business and continued its farm-out campaign for the Walton Morant licence.
It is also evaluating new opportunities in the Greater Mediterranean area, North and West Africa and the UK where it already has an interest in the Waddock Cross onshore licence.
Chief executive Brian Larkin added: “United is well placed to capitalise on emerging opportunities within the oil and gas market and advance our 2024 work programme aim at delivering long-term value to our shareholders aligned with securing a farm-out partner in Jamaica and potential acquisition of growth assets.”