However, the protracted downcycle of the oil and gas industry and weak oil price resulted in an impairment of goodwill in relation to the concessions of US$6.5 million in FY17.
FY17 revenue declined by 16.5% to US$9.0 million from US$10.7 million. This came on the back of a 31.5% decrease in oil production volume from the concessions to 214,895 barrels in FY17 from 313,702 barrels in FY16.
The reduction in oil production volume was due to natural decline of existing wells over the year. The drilling campaign for the concessions was successfully completed for 2017. With new reserves discovered, the group plans to ride on the expected oil price recovery in the coming years with its primary focus on developing reserves and increasing production.
Loyz Energy says oil price recovery bolstered the turnaround for the group in FY17. The drilling campaign for the concessions for nine wells which started in early 2017 was fully funded by the cash flows generated from the concessions.
Shares in Loyz Energy last traded at 1.9 cents.
