(MENAFN- ProactiveInvestors - UK) IGas Energy Plc (LON:IGAS) revealed it has been successful in cutting back production costs to levels more manageable in the current oil price environment.
Operating costs for the financial year ended December 31 reduced to $24.6 per barrel of oil equivalent down from $34.6 per boe in the prior year.
"In the period we have continued to move the business forward significantly against a very difficult oil price environment importantly reducing operating costs by 25% and strengthening our balance sheet through the farm-out to INEOS' said Stephen Bowler IGas chief executive.
He added: 'In this protracted period of low oil prices our focus remains on balance sheet strength and preserving cash whilst continuing to deliver value adding activity."
The big numbers - much like everyone in the sector - show the extent of financial damage caused by the continued oil price weakness.
IGas a conventional oil and gas producer with unconventional upside told investors that revenue fell to 25.1mln in 2015 down from 58.2mln in the year before.
Earnings (EBITDA) were reported at 18.3mln down from 216mln.
Having reported a profit of 5.2 in 2014 the group made a loss of 44.8mln last year. Much of the losses come from impairments and write-offs.
IGas wrote 10mln off exploration and evaluation assets while some 48.1mln of impairments to production assets.
At the end of December IGas had 28.6mln of cash and equivalents. Net assets were valued at 98.8mln. Debt had reduced to 73.3mln at year end compared to 86.4mln in 2014.
Operationally the conventional oil and gas business remains reasonably stable. Production averaged 2570 boepd for the year down from 2737 boepd in 2014. And guidance for 2016 is pitched at between 2500 and 2700 boepd.
IGas highlighted that for 2016 it has some 390000 barrels of oil hedged at an average floor price of $62 per barrel and the mark-to-market value of the arrangement was 6.6mln.
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