Enegi Oil (LON:ENEG) chief executive Alan Minty says the outlook for the company remains very good, despite the ‘undeniable challenges’ that it has been facing.
The company has, against a backdrop of falling oil prices, been planning ‘marginal’ field developments in the North Sea using cost saving, mostly unmanned technology.
During the twelve months to June 30 the company focussed upon the development planning for the Fyne field in the North Sea, and also done deals to add to the portfolio.
It has also held ongoing talks with Wood Group, and it believes a successful conclusion to these talks could spark an accelerated development of the marginal field initiative.
Elsewhere, post year end, the company has exited a proposed joint venture in Canada, where it will now embark upon an incremental investment initiative – whereby it aims to bringing in E&P companies and oilfield service companies to share development costs in exchange for information, license equity and guaranteed services.
"The period under review has undeniably been challenging for the company,” Minty said.
“However, there is no doubt that the potential scale of our marginal field initiative is very significant.
“Whilst it has taken time and considerable effort to establish the foundations of this venture we are very confident that we are nearing the end of that phase and that we will see a considerable upturn in activity once it is completed.
“As a company we are pursuing a strategy which we believe is highly appropriate at this time in light of market conditions and industry sentiment and believe the outlook for the company remains very good.”
In terms of financials, the pre-revenue oil junior reported a £4.8mln loss before tax, up from £3.1mln last year, with the additional spending focussed on the marginal field initiative.
As of June 30, Enegi had net assets worth £2.4mln and it had £232,000 of cash.