JKX Oil & Gas has recorded wider losses after the low oil price hit revenue and production fell.
Pretax loss in 2015 widened to $81.5million from $79.5m after revenue dropped to $88.5 million from $146.2 million.
Exceptional charges lessened to $64.9 million from $72.5 million the previous year.
The company, which has been hit by the falling oil price and political tension between Ukraine and Russia, replaced its board in January as it bids to restore investor confidence.
Production fell to 8,996 boepd from the 9,919 produced in 2014.
JKX did not undertake any development drilling in 2015 due to “cash constraints,” spending a total of USD8.7 million in capital expenditure compared to the USD42.3 million spent in 2014.
The new board are reviewing all development projects and opportunities as it establishes a future strategy for the company.
“Since the appointment of the new board on 28 January 2016, we have visited all the main assets of the group and identified significant scope for operational improvements and cost savings across JKX,” said chief executive Tom Reed.
“Areas of legacy risk exist primarily related to production tax litigation in Ukraine, which we are confident that we can continue to manage,” he added.
JKX reported a cash balance of $25.9 million at the end of 2015, but said this has fallen in early 2016 and now only stands at $11.4 million following a large redemption payment due under its convertible bond and because of some severance costs.
The company has to pay $3million in legal costs relating to a legal case launched against the company by two of its shareholders.
“There remain risks noted above in respect of the $30.1 million bond payment which may become due in February 2017, the contingent liabilities in respect of Ukrainian production taxes, the Ukrainian production licence compliance issues and the continued low oil and gas prices, which, if realised, may impact the going concern status of the company,” said JKX.