LONDON (Alliance News) - Petro Matad Ltd Friday said it managed to squeeze out a tiny USD93,000 profit in the first half of 2016 after the cash calls it received provided some much needed income to cover the company's costs.
The company turned from a pretax loss of USD1.7 million last year after securing USD4.8 million in income from cash calls received in 2016 from BG Group, now part of Royal Dutch Shell PLC, to fund operations under the farm-out agreement prior to receipt of the exit notice.
Earlier this month, after the reporting period, Petro Matad secured a USD10.0 million payment from Shell as part of the oil major's decision to exit the venture with Petro Matad on two blocks in Mongolia. A further USD5.0 million payment from the Mongolian government is expected in the near future as part of the exit.
"Following receipt of these funds the company will be in a position to execute its exploration program for the next twelve months," said the company.
The employee benefit expense was higher in the half at USD1.8 million from USD645,000 whilst exploration costs soared to USD2.2 million from USD160,000, with other costs also increasing to USD683,000 from USD431,000.
Petro Matad shares were trading down 3.3% to 2.95 pence per share on Friday morning.
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