Gulfsands Petroleum(LON:GPX) says it has made substantial progress in applying its financial and technical strengths to new business opportunities.
The company is expecting 2013 to be a busy year with its newly acquired interests in Morocco and Colombia, as it works to add diversity following the halt in operations in Syria.
The international sanctions on Syria have meant that in 2012 no revenues were generated from the group’s oil fields in Block 26; consequently, Gulfsands reported a US$27mln loss for the year. It ended 2012 with US$91mln in cash, down from US$124.2mln last year.
“I am not going to offer hostages to fortune by making any prognostication, at this juncture, as to the timing of a return to production in Block 26. All that I can usefully say in that regard is to echo the heartfelt wish of all reasonable people that the violence cease and some semblance of normality be restored to the lives of the people of Syria, who have suffered and continue to suffer so terribly,” said chairman Andrew West.
“As to the company’s new initiatives, I am unashamedly enthusiastic. We now have before us some fine opportunities. I believe we know how to make the best of them.
“As a board and senior management we have done it before, building the Syrian operation from scratch in little more than three years, and I see no reason why we should not repeat the trick given hard work, sensible commercial judgement and some reasonable luck, which latter is always an essential ingredient of success in the exploration business.”
West says the next twelve months will be crucially important for the company.
Last month Gulfsands acquired interests in two exploration and production agreements in Colombia. These projects are believed to be highly prospective and have low initial work obligations.
Earlier in the year, in January, Gulfsands completed its Moroccan acquisition. The company could be able to generate cash flows from gas production as soon as the third quarter of this year.
The company says there will be substantial development and exploration activity this year on the newly acquired area, which spans 13,352 square kilometres in northern Morocco.
