Genesis doubles resource estimate

North Sea-focused Genesis Petroleum has doubled its estimated recoverable resources to a billion barrels of oil equivalent.

The AIM-quoted company, which has secured a rig to drill on its Block 9/5b prospect, upped its potential resource figure after winning three new offshore Norwegian licences. In the year to June, Kent-based Genesis lost £1.3 million before tax, but the Norwegian tax authorities refunded 78 per cent of the company’s exploration expenditure, resulting in a net profit of £734,000.

Genesis, which had a £755,000 loan note converted to equity and arranged a debt facility to bridge Norwegian tax funding, is now applying for more UK and Norwegian exploration acreage. The shares, which collapsed from 85.5p to 10.25p in 2006, have now reached 43p, valuing the company at £73 million, and could rally further if drilling results please.  

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