Pre-tax losses at Anglo African Oil & Gas rose to £937,313 in the 10-month period to the end of December - up from £345,272 in the year ended 28 February 2016.
The group ceased its previous business of diamond mining in Namibia through its subsidiary company, Sonnberg Diamonds (Namibia) (Pty) Limited, in the year to 28 February 2016, so that, in the period to 31 December it could pursue the acquisition of an oil and gas company, Petro Kouilou SA, situated in the Republic of the Congo.
This acquisition completed post-period-end, with a 49% interest being acquired.
The group said it was currently seeking to acquire the remaining interest and following completion of the acquisition, it would, through its subsidiary, hold a 56% stake in the producing Tilapia oil field in the Republic of the Congo.
Chief executive Alex MacDonald saids: "2017 has seen us successfully raise £10 million, secure admission to AIM and complete the initial acquisition of an interest, through Petro Kouilou SA, in the productive Tilapia oil field in the Republic of the Congo.
"We have commenced operations at the Tilapia field, and have defined a development strategy to increase production, principally through a drilling programme targeting existing reserves and a proven discovery, as well as the potentially transformational opportunity in the Djeno Sands Horizon, an horizon which has been found to be highly productive in neighbouring fields, making it a comparatively low-risk venture.
"Contemporaneously with the preparations for the drilling campaign, we also commenced pre-identified low-cost workovers of two existing wells on the asset, giving the company a potential opportunity to increase production in a cost-effective manner.
"This is ongoing and, as investors will be aware, has had mixed results thus far.
"Our work at TLP-101 has increased the flow rate by 40% from approximately 32 bopd to approximately 45 bopd.
"With the second well, TLP-102, we have proven the presence of hydrocarbons but, after re-perforation, the well has not flowed and therefore we are re-examining the potential for alternative stimulation methods.
"However, as we emphasise above, the true potential of Tilapia is in the deeper horizons which we will be targeting through the drilling campaign.
"We have a strong and experienced technical team on the ground, led by our operations director Oleg Schkoda, who has many years' experience in the Republic of the Congo and of these particular horizons, plus a supportive local partner, and we believe we are well positioned to take advantage of the opportunity in front of us."
At 9:25am: (LON:AAOG) Anglo African Oil Gas Plc Ord 5p share price was -0.75p at 19.5p