Circle Oil, the Limerick-based oil and gas exploration company that is quoted on the Alternative Investment Market in London, has reported revenue of $84.6 million for 2014, down 9 per cent on the previous year.

The company said the reduced revenue was principally the result of lower oil prices and that a strategic review of its cost base and funding options was now under way with a view to underpining profitability in a lower price oil environment.

Group operating profit, before write offs and impairments, was down 28 per cent, to $23.3 million. Pre-tax loss for the year was $53.9 million. The previous year the pre-tax profit was $28.8 million. The share price was down 2.5 pence, or 18.8 per cent, at 3 pm.

The company, which is focused on oil and gas exploration and production in Morocco, Tunisia, Oman and Egypt, has appointed Mitch Flegg as its new chief executive replacing Chris Green who resigned in March.

During 2014 the company generated cash from operations of $54 million, up from £53 million the previous year. Receipts from the Egyptian General Petroleum Company were up ten per cent on 2013 and are now back at levels that existed prior to the Arab Spring, the company said.

Chairman Stephen Jenkins said Circle had increased its reserves and production in both Morocco and Egypt, despite robust production in Egypt and record production in Morocco.

He said Circle will be drilling three new wells in Egypt during 2015 that will minimise the decline in production rates.