Irish exploration group Island Oil & Gas reported a first-half pretax loss of £2.2 million (€2.4 million) compared to a profit of £168,000 in the year earlier period.
The company said it had focussed on diversifying its portfolio into Albania and Morocco and with regard to the former was converting a reconnaissance licence to an exploration permit.
The company had revenue from gas sales of £1.3 million, up 41 per cent on the same period last year, with a cash balance of £1.9 million and no bank debt.
With regard to Island's Irish assets the company said it would look to develop its gas storage business using the Schull and Old Head discoveries.
In a note to investors Davy said Island's strategy was to convert its Irish assets to cash as soon as possible and develop its exploration portfolio internationally.
The company reported a loss of .019 pence per share.