Shares slump as losses widen at Edge Resource

17th Jun 2013 08:32

Edge Resources said full year losses widened after what the company described as a 'transformational period'.The aim-listed oil development firm said losses for the year widened to $6.7m for the year to the end of March from $2.0m last time. Revenue, net of royalties, increased to $7m from $5.2m before. The losses came after additional costs to complete its listing on AIM in July 2012 and after its Willesden Green natural gas property was written down by $1.4m due to continued weakness of natural gas pricing, the group explained.Edge Resource said average production increased to 681 barrels of oil equivalent per day compared to 452 boepd last time.President and chief executive Brad Nichol said: "The last 12 months has been a transformational period for the company. Edge's focus will continue to be on conventional, shallow, developmental drilling, with the planned 2013 and 2014 capital programme concentrated on oil assets allowing the company to increase near-term oil production and the associated cash flows." "Previous drilling and seismic work uncovered additional and undiscovered oil pools on the company's 100% owned asset in Primate, Saskatchewan. The company is currently conducting preliminary field and geological work on a planned multi-well programme on those lands to further delineate the pools and exploit the significant value of the reserves, as defined by our updated reserve report, held in these new pools." Shares of the group fell 14.95% to 11.38p at 09:30 in London.CJ