United Oil & Gas has reported a profit before tax of $1.8m for the six months to June 30, a swing on the loss of $756,000 in the corresponding period last year.

Revenue for the period was $2.4m, according to interim results for the group.

The Dublin-based company has a cash balance of $1.2m.

Its working interest in oil production averaged 1,975 barrels of oil per day during the six month period.

In Egypt, United completed its Rockhopper acquisition.

Meanwhile, in Jamaica, United secured a 100pc equity stake and operatorship of the Walton Morant licence, post interim results.

However, in Italy the company’s licenses are located close to the epicentre of the outbreak of Covid-19 in the country, which has had an impact on the level of activity possible in Italy.

United’s operations this year have taken place against the background of sustained low oil prices, driven in large part by the global pandemic.

Earlier this year United made the decision to defer all non-essential capital expenditure, however, it has still been active across all licence areas in 2020.

United said it will continue to “evaluate new venture opportunities emerging with the aim of putting the company in a position to move quickly should a value opportunity present itself.”

Commenting on the interim results, Brian Larkin, chief executive of United Oil & Gas, said the year has been “successful” for the company, “with integration of the Egypt assets which are delivering low cost, sustained production, material reserves growth and positive operating cash flow.”

“Looking ahead our focus remains on managing United in a responsible way as we allocate capital prudently and efficiently to grow the business. We are well placed to manage the challenges the industry is experiencing and to take advantage of an improvement in market conditions,” Mr Larkin added.

 

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