Upstream oil company Nighthawk Energy Plc (HAWK.L) reported Wednesday a narrower loss for the full year ended June 30, helped by a decline in administrative expenses and a 258% surge in revenue.
Loss before taxation for the full year narrowed to US$1.69 million from US$2.49 million a year earlier and loss attributable to shareholders came down to US$1.30 million or 0.55 US cents per share from US$2.49 million or 1.34 US cents per share for the same period last year. Loss from continuing operations was US$1.69 million or 0.72 US cents per share.
Yearly revenue of Nighthawk Energy grew to US$497.88 thousand from US$139.00 thousand in the prior year period. Nighthawk and its partner Running Foxes Petroleum Inc. have been producing and selling oil for the last nine months from various conventional and non-conventional formations during both test and continuous production from numerous wells.
Administrative expenses reduced by 23% to US$2.51 million from US$3.27 million a year earlier.
In the company's Revere project there are currently 140 wells on primary production and gross production is currently in excess of 150 barrels of oil equivalent per day. The company expects the production to increase significantly on completion of new production wells and as waterflood injection takes effect.
Till date of the 10 vertical wells that have been drilled in Nighthawk's Jolly Ranch project, nine of these wells have been completed as production wells and one is being utilized as a water disposal well, the company said.
In August 2009, Nighthawk raised approximately US$37 million via an institutional placing. As a result of this funding, the company said it is in a better financial position and has sufficient funds for the development of its core projects for at least the next 12 months. The company plans to use the proceeds for drilling 20 wells at Jolly Ranch, and to drill up to 200 wells and construct production facilities at Revere.
"The next 12 months have the potential to be transformational for Nighthawk as we continue the development of our core projects," the company said.
HAWK is currently trading at 35.75 pence, up 0.70% on LSE.
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