Oil and gas explorer Northern Petroleum has admitted it will keep a tighter reign on expenditure as it looks to refocus its drive offshore.
The firm, which axed two of its UK onshore licences last week as part of a cost-saving drive, saw losses grow to EU28.5million for 2013, after suffering significant impairment costs from their UK and Italian projects.
Now Northern chief executive Keith Bush wants the company, which sold off its Dutch operations for more than £16million last year, to refocus on offshore projects with a smaller outlay.
“The company aims to provide investors with the opportunity of high returns to match the inherent risks of investing at the smaller end of the market,” he said.
“To achieve this, there will be a continued effort to identify and develop exploration and appraisal opportunities, primarily offshore, but with only a controlled outlay of the Group’s capital.
“The timing and results of this type of activity are less within the management’s control and typically take longer to mature to a point where a return on investment can be realised.
“However, in conjunction with the primary strategic focus of production led growth, this exploration and appraisal activity will provide the opportunity for significant upside.”
The company, which underwent a boardroom reshuffle last year, said it was now looking to step up its operations in Canada, after picking up more than 9300 acres of oil sites a year ago.
Two new wells have been drilled on the site so far this year, with an existing well re-opened, after analysis indicated more than 100million barrels of oil equivalent in resources.
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