New Zealand-focused oil and gas explorer Kea Petroleum has seen a spike in profits as a result of hydrocarbon sales.
The company announced its preliminary results for the year ending May 2014, with revenue increasing to £2,087,000, up from £829,000 in 2013.
Kea said the increase was associated with the production of hydrocarbons from Puka-1 and Puka-2.
The revenue from both Puka-1 and 2 comes after disappointing results from its Puka-3 well.
It also recorded a net loss of £4.86million, compared with a net loss of £8.41million the year previously.
Kea’s chairman, Ian Gowrie-Smith, said: “It has been a challenging period for Kea but the Board remains confident of an exciting year ahead.
“The philosophy and strategy of the Company has been to balance our exploration portfolio between cheaper lower risk, lower reward wells and the high risk, high reward plays.
“Our goal is to try and maximise the return to our shareholders by mitigating risks through farm-ins and farm-outs as well as bringing the best possible talent on board to assess opportunities and to manage our operations.
“As to the future, we can’t afford not to drill the new Shannon structure: it’s too exciting and too prospective, and MEO and ourselves are finalising drill target and funding discussions.
“It’s worth shareholders supporting because success here would lead to a whole new and different chapter for the Company.”
The company recently strengthened its management team following the appointment of Ian Brown as Managing Director, former chief operating officer of New Zealand Energy Corp.
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