Independent Resources (LON:IRG) continues partnering talks for the Ksar Hadada development, and it says the project remains viable at even if oil prices were substantially lower.
The company has an 86% stake in Ksar Hadada, in Tunisia, which is estimated to contain over 100mln barrels of recoverable oil.
A farm-out process was launched in the latter part of 2014, and talks continue with a number of parties.
“While the speed of this process has understandably been influenced by the volatility of oil prices and the changing political and security situation in Tunisia and across North Africa, the licence remains economically viable,” the company said in today’s results statement.
At the same time IRG chairman Grayson Nash told investors that as a result of lower oil prices it is more attractive for the company as a potential acquirer of assets.
“We continue to examine a number of opportunities and to progress discussions with potential financial partners,” he added.
IRG ended the year, to December 31, with $420,000 of cash. During the group’s financial year it raised £1.75mln from equity, and subsequently in the current year it has raised a further £800,000.
Now, as of June 24, IRG has around £460,000 of cash.
The pre-revenue oil company reported a £1.57mln operating loss, down from £3mln in the preceding year.
Overall the loss for the year totalled £6.48mln, due to the recognition of a £4.9mln loss related to a discontinued coal bed methane project in Italy.
Elsewhere in Italy, IRG continues to await the start of court proceedings relating to the Rivara project, and that legal dispute aside, the company says the “general environment in Italy now appears to be becoming more positive.”
“Legislative change proposed by the Renzi administration as part of its 'Unlock Italy' agenda specifically identifies new gas storage capacity as strategically important and also seeks to amend the permit approval process to lessen the involvement of regional governments,” the company said.