Sea Dragon Energy (CVE:SDX) is operating on a reduced cost base and continues to adapt rapidly to declining oil prices, the company said.
Results for 2014 showed the effect of the slumping oil price, with the company achieving a net price of US$71.18 a barrel in the final quarter of 2014 compared to US$93.65 a year earlier.
Net revenues for the year fell to US$19.92mln from US$29.42 in 2013, and the post-tax loss deepened to US$9.0mln from US$7.7mln in 2013, due to a US$2.8mln impairment charge for its NW Gemsa concession to reflect lower crude oil prices and a US$1.2mln write-down of the value of its materials inventory.
The group ended the year with cash on hand of US$3.0mln after paying down US$1.2mln of the company’s debt facility.
"Sea Dragon delivered record production, positive cash flow, a solid payment record and collections from local authorities,” said Paul Welch, president and chairman of the Egypt-focused oil & gas producer.
“We also focused on capital preservation by reducing discretionary spending and operating costs across the portfolio of assets,” he added.
“The company will continue to benefit from stable production as it deals with lower oil prices and cash flow in 2015. Adapting to the changing oil price environment has been and will continue to be challenging; however, given Egypt's improved business climate, its low operating costs and its significant business upside, we believe it is one of the best places to be operating in this environment.," Welch said in a statement issued just before the Easter break.
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