Deltic Energy shares dropped 4% to 3.6p in early morning trading on Wednesday after the natural resources firm announced a widened loss to £1 million in HY1 2022 compared to a loss of £691,754 the year before.
The company reported a cash outflow of £2.4 million in the financial term against £873,064 in HY1 2021.
Meanwhile, Deltic Energy confirmed a £1 million operating loss from £674,718, including cash expenditure of £1.1 million, a write down on its Blackadder licence at £48,188 and additional non-cash costs unrelated to existing licences.
The firm also noted £7.6 million in cash on its balance sheet in HY1 2022 against £11.1 million the last year.
Deltic Energy mentioned it remained fully funded for its Pensacola well operations, which are projected to provide strong return levels along with its Selene prospect if supply insecurity and high gas prices continue into the coming year.
“I am extremely proud of what we have achieved in the year so far and very excited about the outlook for our company,” said Deltic Energy CEO Graham Swindells.
“We have seen considerable progress made across our business, with key developments involving our Pensacola and Selene Prospects, which contain over 600 BCF (P50 Prospective Resources) of natural gas, as well as progressing the licences which formed part of our transformational farmout and partnership with Capricorn Energy.”
“As we stand on the verge of drilling our first well on Pensacola with our partner Shell, and with Selene now to follow, we are further demonstrating the success of our business model which is focussed on identification of early stage opportunities and taking them from licensing through to drilling whilst introducing partners of the highest calibre.”
The AIM listed group said it would not issue a dividend, returning shareholder returns via capital growth as opposed to capital distribution.
