Longboat Energy PLC on Tuesday said that it may no longer be able to continue without adequate funding, after seeing its pretax loss widen in 2022.

Longboat Energy is a London-based North Sea-focused exploration and production company. Shares fell 14% to 8.40 pence each in London on Tuesday afternoon.

In 2022, the firm saw its pretax loss widen to £49.4 million from £11.6 million a year prior. Administrative expenses widened to £5.4 million from £4.3 million.

Chief Executive Officer Helge Hammer nevertheless highlighted Longboat’s presence in Norway over the year, where it drilled five wells and made two significant discoveries.

‘Kveikje and Oswig are among the largest discoveries made in Norway in 2022 and, going forward, we are focussing on maturing the assets technically, unlocking the commercial value of our discoveries, and growing reserves and production,’ Hammer added.

However, Longboat also told investors on Tuesday that the directors are of the view the group will need to access additional funds during 2023 in order to fund on-going operations and pursue growth opportunities.

It expects that these funds will be sourced through asset disposals, farm downs, issuing new equity or combination of these actions. However, the firm warned that if this was not the case, then the group could have limited or no liquidity at the end of 2023.

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