MetalNRG PLC (LSE:MNRG), a natural resources and energy investment company, said its investee BritNRG Ltd is now profitable following operational improvements carried out this year.
BritNRG is currently producing an average of 3,500 barrels of oil a month, up from an average of less than 1,500 barrels a month in the first quarter.
The UK-focused company sold 3,780 barrels in July at an average price of US$73.88 per barrel (equivalent to US$280,000 of gross revenue). Similar levels of sales were achieved in August with monthly oil sales projected to exceed 4,000 barrels.
The energy company’s operating partners have agreed cost recovery of 100% of production, which will provide BritNRG with cashflow advantages.
BritNRG also now expects the revenues from the Whisby site in Lincolnshire to exceed US$2.5mln per year at current forecast oil prices.
"The encouraging news from BritNRG is confirmation of our strategy to invest in near term cash-generative projects and particularly of our decision to invest in BritNRG,” said MetalNRG chief executive Rolf Gerritsen.
“We are taking the necessary time to develop our medium-term strategy, the benefits of which we intend to share with MetalNRG investors in Q4 2021, whilst we progress key activities related to the plan for BritNRG to be listed on the London Stock Exchange in 2022," said Pierpaolo Rocco, chief executive of BritNRG.