KrisEnergy's loss widens to $111.6m in Q2

Losses continue to pile up after a $71.3m impairment charge.

Oil company KrisEnergy loses $111.6m (US$81.8m), 224.6% wider than last year's loss of $34.4m (US$25.2m).

According to the company's financial report, working interest production averaged 12,649 barrels of oil per day (boepd), 23.9% lower YoY.

Production weakened at Wassana oil field, Thailand, where it holds an 89% interest.

Revenue rose 19.5% to $50.1m (US$36.7m) after prices went up for crude oil 40.2% to $62.9/ bbl (US$46.1/bbl) and natural gas 23.4% to $5.6/bbl (US$4.1/mcf) despite low sales volume.

Operating costs hiked 97.8% to $36.1m (US$26.5m) in Q2, whilst average production jumped 160.3% to $23.1/boe (US$23.1/boe), from the weak Wassana production.

KrisEnergy's losses also increased after it accounted for an impairment charge of $71.3m (US$52.3m) from its interest in Block A Aceh PSC after a farm-out deal.

Moreover, $8.5m (US$6.2m) of joint operation receivables related to the relinquishment of Kutai PSC were written off.

These expenses were partially offset by the net gain on fair value adjustment of derivatives amounting to $1.8m (US$1.3m), KrisEnergy said.

Loss before tax also increased after the completion of the farm-out to Medco in April which cost the company $71.3m (US$52.3m).