IGas posted a loss of £19.3million.
The firm, which focuses on onshore hydrocarbon exploration in the UK, also saw turnover fall from £34.5million to £17.6million year-on-year.
Chief executive Stephen Bowler credited a weak oil price for the financial falter.
“Whilst it has been a challenging period with a further weakening of the oil price, the Group has continued to make good progress across its asset base. We completed the farm-out to INEOS in May 2015, receiving £30m in cash and have a gross carried work programme of up to $285 million across our shale assets, with our partners Total, GdF and INEOS.
“We are delivering on our five year development plan, with the completion of the acquisition of 110km2 of 3D seismic in the North West, on time and on budget, and submission of the application to drill two wells in North Nottinghamshire. We are in the process of identifying a number of sites for further shale appraisal drilling and hydraulic fracturing of wells to determine flow rates and assess commerciality.
“We remain focused on maintaining flexibility for the business in the current oil price environment and to deliver against our strategy.”
IGas was offered a total of six new licences in the UK’s 14th Onshore Oil and Gas Licensing first round with the second tranche of the 14th onshore licensing round expected later in the year.