Andalas Energy reports sizeable first-half loss

Andalas Energy and Power was full of positivity on Tuesday, despite reporting a sizeable loss in its first half report.

In the six months to 31 October 2015, it made a total loss of $1.89m (£1.32m), compared to a profit of $463,000 in the previous corresponding period.

The AIM-listed investment vehicle said that, during the period, it initiated its strategy to build a "significant energy company" to capitalise on Indonesia's strong domestic demand and attractive pricing environment.

It also implemented a farm-in strategy, screening over 70 individual opportunities, carrying out a detailed assessment of 17 "high grade" targets and completing due diligence on four.

The company lodged farm-in offers for thre assets, which were being considered by the existing owners at the time of the report.

"Andalas Energy has already achieved a number of significant milestones as we implement our defined strategy to build a significant energy company focused in Indonesia", said CEO David Whitby.

"From the outset we needed to differentiate ourselves from the crowd by blending deep country knowledge with a commitment to identifying and implementing investment decisions which have the potential to still deliver shareholder value despite low commodity prices", he added.

Since the period ended, Andalas Energy said it had secured an exclusive agreement to negotiate a meterial interest in the Siak project, which was producing approximately 1,200 barrels per day.