StockMarketWire.com – Serica Energy insists it has strengthened its financial position during the quarter
The Company received a US$5 million back cost contribution following the farm-out in Namibia and ended the quarter with an unrestricted cash balance of US$23.3 million, 40% up over the quarter and 16.7% up on the balance held at the start of the year.
This improved cash position underpins the Company’s planned exploration programmes in the UK, Namibia, Morocco and Ireland where material prospectivity has been identified.
The exploration programmes are expected to be accelerated following completion of current farm-out negotiations.
The Company has no debt and an undrawn US$50 million facility. Discussions are taking place with a number of debt providers to supplement this facility to fund the development of Columbus following project sanction being granted by the Department of Energy and Climate Change (DECC).
During the first half the Kambuna field contributed sales revenue of US$8.5 million to Serica’s net interest (US$4.4 million in the second quarter).
At 8:22am: (LON:SQZ) share price was +1.13p at 27.13p
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