Loyz Energy

Loyz Energy: 2QFY14 revenue of $6.8m (2QFY13: nil), arising from the recognition of drilling revenue upon the delivery of three wells in the US. While gross profit was negative $0.5m due to higher cost of sales, other credit of $5.9m (2QFY13: $0.1m) due to waiver of loan by by non-controlling interest related to the acquisition of Loyz Rex Drilling Services, helped bolster net profit to $1.6m. The group remains operationally loss making. NAV stands at $0.21. The group began to record production revenue from the Schlak 3 well in North Dakota. However in Colorado, flow tests have been disrupted and delayed by the extreme cold weather conditions. Testing will resume when appropriate. The group is looking to acquire more seismic data and interpretation for the assets in the US in the coming months. The availability of the data will assist in identifying drilling locations and improving the likelihood of success of its drilling campaign. Besides developing its existing O&G properties, the group is also seeking opportunities to acquire producing O&G properties.