Upland Resources has reported that the Group's loss on ordinary activities after taxation for the year ended 30 June 2017 amounted to £763,657, compared to £420,566 for 2016.
Cash outflow from operating activities in the year came to £906,110 (2016: £329,832).
Cash and cash equivalents as at 30 June were £2,250,872 (2016: £1,039,352).
The Directors said they are unable to recommend payment of a dividend.
The Group's Chairman said:
"Upland is a relatively new oil & gas exploration and production company that is building a portfolio of attractive upstream assets.
"Upland continued to make excellent progress in the year under review. It has now put into action the first phase of its strategy, whilst laying the foundations for the second phase.
"The first phase calls for the acquisition of stakes in assets with a favourable risk/reward balance that can provide Upland with revenue to underpin its ongoing costs and to help finance the second phase. The second phase involves securing assets with potentially higher risk than Phase 1, but with the potential to be transformational for the Company.
"In July 2016, we were very pleased to welcome Bolhassan Di to the Board as a non-executive director. Bolhassan brings a wide range of experience, contacts and knowledge to the Company, having served in senior technical and management roles in Shell around the world. He has also served in a number of high-profile roles in Malaysia: as a member of the Sarawak State Legislative Assembly, as a Sarawak Assistant Minister and as Chairman of the Miri Port Authority. His appointment is an integral part of delivering the second phase of Upland's strategy.
"On 6th October 2016, the UK Oil & Gas Authority formally awarded PEDL 299 to Upland's wholly-owned subsidiary and its partners. Two days earlier, we were able to announce the increase in the Company's stake, at no cost to Upland, in the permit from 16.67% to 25%. This was due to the withdrawal of our partner, Shale Petroleum, from all its activities outside North America. Upland is working with our partners, INEOS and Europa Oil & Gas Limited ("Europa"), on the first stages of the work programme for this permit, which includes the Hardstoft Field.
"On 24th November 2016, the Company announced that it had entered into a conditional agreement with Europa to acquire a 10% stake in PEDLs 180 and 182, onshore Lincolnshire. These PEDLs contain Wressle Oil Field and the Broughton North prospect. Wressle Field is due to come into production at a planned rate of 500 bbl/day; further details are given below. Hence, Upland should benefit from the revenues from a net 50 bbl/day - a substantial boost to the Company's finances. Upland's agreement with Europa is contingent on, inter alia, the final approval of the Environment Agency and receipt of planning permission from North Lincolnshire District Council. As of the date of this report the latter has not yet been received.
"At the same time as announcing the Wressle acquisition, Upland completed a successful £2.2 million gross fundraising, at a share price which was a 30% premium to the IPO price of little more than a year before. The proceeds are to pay for the Wressle stake, to pursue further assets and to cover ongoing expenses. Your Directors took full part in this fundraising and now hold between them some 38.3% of the issued shares in Upland.
"In addition to the above, Upland has worked diligently on assessing a wide range of further potential acquisitions and farm-ins to add to the above assets. As we have indicated previously, our geographic focus is on South East Asia, the UK and North Africa. I am pleased to say that substantial progress has been made and we look forward to updating investors in due course."
At 2:59pm: (LON:UPL) Upland Resources Limited share price was 0p at 1.36p