Dublin registered Island Oil and Gas said this morning its full-year pre-tax loss widened mainly on the write-off of the non-operated Inishbeg well, deemed non-commercial, and said the current high cost and general shortages of goods and services within the industry will continue.
Island Oil & Gas posted a widened pretax loss of £5.18 million sterling including the write-off cost of £4.53 million for the year ended July compared with £481,000 last year, while its turnover increased 53 per cent to £1.76 million against £1.15 million earlier.
The company said it plans a 3D seismic buyout in its Atlantic Margin acreage over the potentially very large Killala and Slyne structures (gas and oil targets respectively).
The company said its cost of sales rose to £902,000 from £712,000 the year earlier, while administration costs stood at £707,000 compared with £1.04 million for the previous year.
Island Oil said its gross revenue from its interest in the Seven Heads gas field improved for the second consecutive year, and its gross profit for the year increased 96 per cent to £860,000.
Island Oil said next year it will further progress the Old Head, Schull and Amstel field developments with the aim of achieving production and ultimately cash flow by the end of 2009, subject to market conditions.