Gold Oil (LSE: GOO) said its revenues doubled over the year to 30 April, while profits turned into losses as the company had to operate amid “difficult circumstances.”
The Central and South America focused explorer and producer posted a loss of £3.17 million after making a £1.59 million profit for the full year 2008, resulting in losses per share of 0.62 pence compared to earnings per share of 0.18 pence last year. However, Gold Oil’s revenues amounted to £1.004 million, more than double last year’s £0.399 million.
The company made £1.3 million of sales of oil from its South American projects, while writing off development expenditure of £1.9 million and losing a further £1.3 million to administrative expenses.
“The past year has been one of significant challenge for the Company. In difficult circumstances, we have been very active in advancing our portfolio of assets and I am encouraged with the progress we have made,” said Chairman of Gold Oil Mark Pritchard.
The company will now be looking for ways to raise the necessary funds to advance the development of its assets, also looking for partners in its major prospects to move forward with the exploitation of its exploration resources in Peru and Colombia more rapidly. Gold Oil conducted two placings during the year, raising a total £2.445 million.
The group had a cash balance of £2.2 million, down from £5.15 million at the end of 2008.
Gold Oil is planning to farm out part of its interests in Bloc Z34 and Block XXI in Peru with negotiations already in progress. In Colombia, the company intends to focus on increasing production from the Nancy-Burdine fields, also expecting to negotiate an extension of the license for these fields. The company is also looking to participate in one exploration well on the Azar block in Colombia.
Activities at its other block in Colombia, Rosa Blanca, will depend on the outcome of the new seismic and further geological and geophysical work.
“I believe we have an interesting portfolio of assets with a strategy in place to try and balance ‘blue sky’ exploration risk with solid production and that we have retained a good geographic focus,” added Pritchard.