Phoenix Global scores revenue rise as oil prices drive upward

Upstream oil and gas company Phoenix Global Resources on Monday reported an increase in interim revenues on the back of higher oil prices.

For the six months ended 30 June, the firm’s revenue increased by 4.5% to $92.9m off the back of average oil production of 10,776 barrels of oil per day, down from a pro forma basis of 11,304 per day for the second half of last year.

The AIM traded company attributed the drop in production to delays in new drilling projects, bad winter weather and some natural decline.

Offsetting the drop in production was the jump in oil prices from $49.57 per barrel in the first six months of last year to $60.43 a barrel.

Despite the increase in revenue, the company reported a deepened pretax loss of $30.8m, from $7.0m a year prior, due to higher depreciation, depletion, and amortisation and some non-recurring expenses.

The firm had cash and cash equivalents of $10.1m at 30 June, up from $7.2m at the same point last year, while net debt had increased from $16.1m to $121.8m over the same time-frame.

Anuj Sharma, chief executive of Phoenix, said: "The first six-months of 2018 have seen Phoenix make significant progress with the appraisal programme of its substantial position in the Vaca Muerta having crucially satisfied permitting requirements of the Mendoza province in respect of our planned unconventional activity."

The company owns over 794 thousand net acres of concessions in the Neuquina Basin, which is located in the Neuquén and Mendoza provinces of Argentina, and has been actively working in the area since February 2006.

"The unconventional drilling and completions campaign has been progressing well and as planned with a number of wells completed and currently being put in the flowback stage. I look forward to providing further updates as we progress through and beyond the flowback stage and production from the wells stabilises," said Sharma.

Phoenix Global’s shares were up 4.65% at 22.50p at 1702 BST.