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Image courtesy of Trapoil.

UK-based Trapoil warned Thursday that its may run out of cash as soon as July after booking a $67.32 million loss for 2014.

“In the absence of a viable funding solution, the board considers that it is highly likely that the company will become insolvent, and appropriate insolvency proceedings, such as administration or liquidation, will consequently need to be commenced,” Trapoil said.

Trapoil said it only has enough working capital to support activities until about July 2015 and is currently looking into possible asset sales and other funding avenues.

The company is pinning its hopes on the Niobe prospect, located in the onshore UK Licence P.1889, where it said there is a “reasonable prospect” that drilling may be successful.

“The Niobe exploration prospect, although high risk, with a 20 percent chance of success, does have the potential to be very valuable to the group with estimated oil reserves of 20-25 [million barrels of oil],” Trapoil said.

The company booked $20.32 million in revenue for the year, a significant drop from $45.94 million in 2013, and saw its annual loss rocket to $67.32 million in 2014 from $15.62 million the previous year.

Trapoil said the revenue fall was due to “adverse weather conditions” at the onshore UK Athena field during the first half of the year and weak Brent crude prices.

The company also booked $18.95 million in impairment charges tied to the relinquishment of various license interests  “considered uneconomic” and $22.90 million in charges due to “significant losses” from its 15 percent stake in the Athena field, the company’s only producing asset.