LONDON (dpa-AFX) - Heritage Oil Plc (HOIL.L), an independent upstream exploration and production company, on Wednesday reported a loss for the year, compared to a profit in the previous year, despite a rise in production. The shares are falling over 5 pecrent on the LSE.
The company reported a loss attributable to owners of the company of $66.89 million in comparison with a profit of $1.22 billion in the prior year. Loss per share totaled $0.25 per share compared to $3.57 per share last year.
Revenue from petroleum surged to $9.03 million from $5.02 million.
Cash capital expenditures increased to $134.9 million from $119.0 million.
Production averaged 673 barrels of oil per day, up 24 percent from 2010. Average realised price climbed 45 percent to $36.9 per bbl. Sales volume increased 25 percent to 671 barrels of oil per day.
In August 2011 the company completed the drilling of well 363 in Russia, the first horizontal well to be drilled in the licence. Results of this well exceeded pre-drill expectations and the company achieved a significant increase in production from the field.
The company recorded an impairment of its investment in PetroFrontier to reflect the market value as at December 31, 2011. The loss of $18.89 million was recognised in the available-for-sale reserve for this investment.
Tony Buckingham, CEO, said, '2011 has been a year in which we have enhanced the asset portfolio through the addition of acreage, investing in opportunities and through existing work programmes...We are looking to further develop the existing portfolio and continue to look for value generating opportunities within our core areas.'
The stock is currently falling 5.76 percent at 138.06 pence on a volume of 877,032 shares.
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