The Warrego Energy Ltd (ASX: WGO) share price is higher today after the company released its half-year report for FY21.
At the time of writing, shares in the company were swapping hands for 24 cents – up 4.35% on yesterday's close. In comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.25%.
Let's take a closer look at what the company announced.
Warrego's half-year report
For the 6 months ending 31 December 2020, Warrego declared a net loss of $3.3 million. That's up 31.9% on the prior corresponding period (pcp). The company did not make any operational income for the period. This was also the case in the pcp.
While wages were down 63.7% to total $483,000, professional service fees were up 276.7% to total $966,000. Similarly, the company introduced share-based payments for the period, which totalled $630,000. Finance expenses fell 80.7% on the pcp to equal $26,400.
Earnings per share (EPS) came in at a 0.09 cent loss – greater than the 0.07 cent loss of the pcp.
In good news, cash on hand more than doubled to $33.7 million. Net assets swelled 90.7%, totalling $64.9 million. The positive cash flow came as a result of a capital-raising initiative.
The West Erregulla gas field
Warrego claims the gas field, located off the coast of Western Australia, is its "primary near-term goal." It is a 50/50 venture with Strike Energy Ltd (ASX: STX) and is estimated to contain 1.6 trillion cubic feet of gas.
Speaking about the project, Warrego Managing Director and CEO Dennis Donald said:
West Erregulla is a world-class asset, and we are working hard to ensure we achieve the optimal long-term outcome for our shareholders and customers.
We have assembled a first-rate team in Perth, who have done a lot of the heavy lifting in the past 6-12 months under the direction of our Australian CEO David Biggs, and we will continue to build out our technical and commercial capabilities.
Our successful 'ground up' strategy is centred on creating sustainable, long-term value in a market that is likely to be short of gas over the medium term, and we remain committed to progressing West Erregulla in a focused and logical manner to ensure the project is positioned as a supplier of choice in the WA domestic gas market.
The company also announced it held 100% of the rights to explore 2.2 million more acres in the Perth Basin.
Warrego share price snapshot
This time last year, the Warrego share price was at 11.5 cents. At today's price, shares have increased in value by 104.35%. Warrego reached the 52-week low of 7.5 cents at the height of COVID-19. Shares ascended to the 52-week high of 27.5 cents at the end of September last year.
Warrego has a market capitalisation of $232.2 million.
