Indus Gas narrows pre-tax losses

Indus Gas (INDI) saw revenues increase 16-fold for the six months to 30 September from $215,407 last year to $3,583,851 this year, "reflecting gas sales under the take or pay sales contract".

Additionally, the company was confident that revenues in 2012/13 would increase again as a result of "the ramp up of contracted gas sales" from approximately seven million standard cubic feet per day (mmscf/d) to approximately 34 mmscf/d.

The oil & gas exploration and development company with assets in India also posted pre-tax losses of $815,022 for the six months, down from $2.9 million last year.

However, the company warned that it would see further increases in interest expenses as it planned to draw additional debt, while repaying debt on the original $110 million facility.

Operationally, its SGL Field was currently producing around seven mmscf/d as part of the Phase I development, with the company stating that production, sales and realization of revenues from the development "remained satisfactory".

As part of the Phase II development, Indus has drilled an additional four wells to expand gas sales to 34 mmscf/d. The company commented that the well count would be expanded to 14 "in order to meet contract sales volume and to optimize the depletion of the SGL reserves".

"Phase II field development is progressing smoothly," the company statement read. The Phase II development is expected to be completed by the end of the first quarter in 2012.

Shares in the company rose almost 3% on the news.