Nu-Oil and Gas losses widen on increased development expenses

Pre-tax losses increased to £1.67m from £816,000 a year earlier as the company generated no revenue throughout the period.

Nu-Oil reduced costs at its western Newfoundland operations but saw them increase in regards to the implementation of its marginal field strategy.

However, the firm improved its net liability position, which fell from £3.24m to £1.89m, and strengthened its cash position to £654,000 from the nil balance held at the end of its previous financial year, due in part to the £3.35m raised through the issue of new ordinary shares.

Executive chairman Alan Minty said: "We are pleased with the strong recovery of the company over the last 12 months which in no small part is down to the continuing support of shareholders for which we are grateful.

"New investment has reinvigorated our assets in western Newfoundland and we look forward to the results of the operations that are currently being conducted. The funds we have raised over the last 12 months have enabled us to stabilise the company and put more effort into our marginal field strategy from which we expect to see tangible results in 2018."

At 1240 GMT, the shares were down 6.2% to 0.70p.