oil rig

LONDON (Alliance News) – UK Oil & Gas Investments PLC on Friday reported a widened pretax loss in its last financial year, despite growth in revenue, as it booked costs associated with acquisitions and developments.

The oil and gas company, known for its role in the Horse Hill project near Gatwick Airport, said its pretax loss in the year ended September 30 widened to GBP1.7 million from GBP906,000 in the prior year, even though revenue increased to GBP240,000 from GBP7,000.

UK Oil & Gas said the widened loss was mainly due to uncapitalised consultant, legal and due diligence costs associated with the acquisition and development of its investments and assets, particularly within its core Weald Basin Portland and Kimmeridge tight oil licences and the new Isle of Wight portfolio.

“The board believes that current low oil prices combined with the company’s technical and financial strength provide an ideal opportunity to significantly expand the company’s acreage position. We shall evaluate and seek additional investments as opportunities arise,” UK Oil & Gas said in a statement.

Shares in UK Oil & Gas were trading down 2.6% at 2.75 pence on Friday morning.

By Karolina Kaminska; @KarolinaAllNews

Copyright 2016 Alliance News Limited. All Rights Reserved.

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