Exploration company Petroneft said its losses for the year to the end of December narrowed to $2.8m from $16.4m the previous year.
Revenues for the year rose to $34.6m from $29m while the company reported capital expenditure of $14m for the 12 months, down from the figure of $52m the previous year.
The company said that 2012 was a challenging year.
It said that explorational discoveries and operational successes like the pressure maintenance programme at Pad 1 in the Lineynoye oil field and the development of its second producing field at Arbuzovskoye were unable to compensate for the poor results from the previous year's drilling on Pad 2 at Lineynoye.
''As a result production and cash flows were lower than expected which restricted availability under our Macquarie debt facility and thus impeded our ability to carry out the investment programmes necessary to realise the full potential of our portfolio,'' commented the company's chairman David Golder.
Pointing out that the company is producing from less than 15% of its reserve base, its chairman said the substantial investment in infrastructure made in recent years leaves Petroneft well placed to deliver ''significant and profitable growth'' once the necessary funding is available.
