Island Oil loss widens as costs rise

ISLAND Oil & Gas incurred losses before tax of £400,000 (€591,900) for the year to the end of July, up from £100,000 (€149,000) the previous year, as increased exploration costs swamped earnings from gas sales.

Turnover more than doubled to £1.1m (€1.62m), boosted by gas sales and higher prices from the Seven Heads field, off Kinsale, where the group has a 12% stake.

The group operates two gas wells in the Celtic Sea off the south-west coast of Ireland and chief executive Paul Griffiths yesterday said the group plans a steady build up of its oil and gas portfolio in the years ahead.