North Sea explorer Trapoil today said losses from the sale of assets to former partner Caithness Oil offset a jump in revenues to keep it in the red last year.
The firm posted a pre-tax loss of £10.3 million for the year to the end of December, a slight improvement on the previous year’s £10.9m loss, although revenues surged to £30.3m, up from £1.7m in 2012.
Chief executive Mark Groves-Gidney said Trapoil made a loss of £9.4m on the sale of assets to Caithness, which was in turn bought by shale gas explorer IGas.
The Caithness deal has also left Trapoil with about 4.1 million shares in IGas, worth £4.4m by the end of 2013 – a year Groves-Gidney described as “challenging”.
He added: “Our goal remains to carefully manage and maximise the group’s cash reserves in order to establish a drilling programme that will afford shareholders exposure to an asset base that is capable of delivering increased value.
“With our existing cash reserves and the in-house technical and operational ability to manage risks and secure carried interest positions, we will aim to deliver this strategy and hope to enhance the group’s position with value-driven new ventures.”