Tuskar Resources has reported a loss of £356,000 in the year to March 31st 1997, compared to a loss on ordinary activities of £1.17 million in 1996.

The financial statements released yesterday reflect the capital restructuring proposals confirmed by the High Court in April 1996.

During 1997 Tuskar benefited from higher oil prices and the continued satisfactory performance of the Buchan Oil Field.

Turnover increased by almost 30 per cent to £460,000, compared to £355,000. At the same time, operating profit more than doubled to £141,000 from £67,000. The net loss per share also fell back to 0.06p from 0.4p.

The chairman, Mr Howard Wolf said the scale, spread and focus of the company's exploration and production business has been greatly transformed.

The 40 per cent interest in Oil Mining Lease (OML) and its associated extensive exploration acreage in offshore Nigeria meant there had effectively been a reverse takeover of Tuskar by Allied Energy.

The alliance forged with Allied Energy gives the company immediate operational capacity and distinct competitive advantage in west Africa.

This resulted in last month's drilling on the Obe Oil Field.

In addition, the OML 110 concession not only offers the prospect of developing the field but has significant exploration potential with a large undrilled targets on the block.

According to Mr Wolf, the company is considering various alternatives of financing a fast-track development of the field.

He added that the Buchan Oil Field in the North Sea, in which the company has a 1 per cent interest, continued to perform "satisfactorily".

Its field life has been extended to 2002 as a result of improved cost savings.