Northern Petroleum has more than halved its H1 loss to $1.2m, from a loss of $2.6m previously. Revenue had improved to $1.5m, from $223,000.
Administrative expenses were $1.1m, from $2.5m.
"With production at the current level of approximately 400 bopd, the Group can sustain its financial position with a WTI oil price of approximately $50 per barrel," the company said in a statement.
"As production grows, the Rainbow asset's fixed cost base does not increase significantly, therefore the operating cost increase per additional production barrel is less than $10.
"This makes incremental production from this point forward economically attractive, and something that is achievable and relatively low cost.
"The Group is now developing a winter work programme to double production again to 800 bopd which will then provide free cashflow for investment. This will enable the Group to fund activities in Alberta and other areas such as the 3D seismic programme in the southern Adriatic.
"Funding for this programme will be achieved through a combination of working capital, debt, a farmout and equity as is considered most appropriate at the time.
"The work conducted in the first half of 2016 has enabled the Group to survive in these extreme market conditions and helped establish the platform for further growth. This work is continuing in order to generate strong positive cash flow and core value for shareholders."