SINGAPORE (Aug 14): Oil and gas (O&G) explorer KrisEnergy reported a smaller 1H17 net loss of US$26.1 million ($35.5 million), down from US$45.2 million in 1H16.

This was due to higher revenue as well as a fair value non-cash gain incurred over the period under review.

Group revenue for the half year came in 7.3% higher at US$68.5 million compared to $63.8 million a year ago, lifted by a substantial increase in realised oil prices which averaged above US$46 per barrel (bbl) over 1Q and 2Q this year – the highest levels since 3Q15.

Gas sales prices from the B8/32 and B9A concessions averaged US$4.11 per thousand cubic feet (mcf), the highest level since 1Q16.

Primary factors contributing to the net loss in 1H17 were higher operating expenditure, increased finance costs; a write-off related to the relinquishment of its Kutai production sharing contract; and an unaudited impairment of working interest in Block A Aceh PSC.

The charges incurred were, however, partially offset by a US$73.9 million fair value non-cash gin on the exchange of the group’s 2022 Notes and 2023 Notes dated Jan 11 this year.

“It has been reassuring to witness the increase in oil prices in the first half of 2017, however prevailing uncertainty and price volatility continue to pose challenges to investment decisions,” says Jeffrey S. MacDonald, interim CEO of the group.

“We remain focused on our revised business plan and continued alignment on the Gulf of Thailand as our core area, and through the successful execution of our proposed asset farm-out and divestment transactions, we believe we will be on firmer ground to achieve our development goals going forward,” he adds.

Shares in KrisEnergy closed 2.4% lower at 12 cents on Monday.