Andes Energia widens FY loss as average oil production rises

Oil explorer Andes Energia widened its full-year pre-tax loss as it turned in an average production rate of 3449 boepd in 2016, from 3211 boepd a year before.

The rise in average production primarily arose from the Chachahuen conventional field, it said.

Pre-tax loss for the year was $28.4m, from a year-earlier loss of $12.4. The result included an impairment charge of $7.0m, from nil. Revenue was $67.8m, up from $66.8m.

Andes said, operationally, 2017 had started well, with group production in March 2017 currently at 2518 bpd in Argentina and 984 boepd in Colombia; a total of 3502 boepd.

The company, with its partner YPF, the state Argentine oil company, had 86 new wells planned in 2017, five appraisal wells, 55 production wells and 26 injector wells.

Additionally, 19 reconversions were expected to be performed.

"Out of the 86 planned wells, 30 wells have been drilled since the beginning of 2017. The wells will be funded primarily by field production cash flow and available credit facilities," the company added.

For Andes's licences in Colombia, an aggresive exploration campaign of geochemical surveys were being conducted as part of the committed investment activities with the ANH.

"In Interoil, a drilling campaign of 1 exploration well on the Altair licence and between 2 and 4 exploration wells on the LLA-47 licence is currently ongoing."

At 12:41 BST, shares in AIM-traded Andes were flat at 58.75p each.