Losses at Edinburgh-based Cairn Energy narrowed substantially to $62 million in the first half of the year.
The figure compares to a $219m reverse in the same period last year and comes after the firm suffered a full-year reverse of $556m for 2013.
Unsuccessful well exploration costs came in at $80m in the first half, $31m more than a year earlier, while operating costs and pre-award outlays both also increased.
However, the overall loss narrowed this year as Cairn’s bottom line was dragged back in 2013 by $268m of impairments and costs related to the disposal of investment in Cairn India Ltd.
Chief executive Simon Thomson said Cairn was focused on creating shareholder value by developing a balanced portfolio of exploration and development assets.
“Over the next 12 months the company has an active programme of exploration and appraisal wells with all drilling beyond the current frontier operations targeting mature and emerging basins,” said Mr Thomson.
“In line with this strategy the farm-in to the Statoil-operated Ensis prospect in the Barents Sea commences a planned entry to this emerging region.
“In the meantime the company is addressing its organisational size to ensure it has the appropriate structure to deliver the future work programme.
“Cairn continues to seek resolution of the tax issue in India and will take all necessary steps to protect shareholders’ interests,” he added.