PA narrows losses

Swedish company PA Resources narrowed its losses during the second quarter of the year, despite revenue falling on lower production.

The company posted a loss of Skr26 million ($3.8 million) for the three months to 30 June, compared to a net loss of Skr350 million over the same period last year.

This came despite revenue falling from Skr266 million in the second quarter of 2013 to Skr181 million during the recent quarter.

Helping offset the drop in revenue was a fall in production costs, from Skr121 million to Skr48 million, mainly as a result of its Tunisian assets which were farmed out in the second quarter of 2013 and the abandonment of the Azurite field in the fourth quarter of the same year.

It should also be noted that PA booked a capital loss of Skr462 million in the second quarter of last year from the farm-out of its Didon and Zarat fields in Tunisia.

Also hitting its bottom line that quarter was an impairment of Skr185 million following the relinquishment of its 2008/17 (Block 8) licence in Greenland and its decision to expense an exploration well drilled on licence 9/06 (Gita) in Denmark.

PA attributed the fall in revenue during the recent quarter largely to lower production, which averaged 3200 barrels per day compared to 5400 bpd over the same period last year.

The lower production was partly due to the abandonment of the Azurite field and the farm-down of its Tunisian assets, however PA also noted that output at the Aseng field, off Equatorial Guinea, had been affected by gas compressor issues since mid-April.

It added that remedial work at the field was ongoing and it expected full gas compression capability at the Noble Energy-operated field to resume in the third quarter.

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