13th Sep 2019 09:49
(Alliance News) - 88 Energy Ltd on Friday posted a widened first half loss due to impairments costs relating to three of its Alaskan exploration wells.
For the six months to June 30, the company's pretax loss totaled USD29.3 million versus GBP3.2 million loss in the first half of 2018.
88 Energy attributed this to the impairment of its Icewine-1, Icewine-2 and Winx-1 exploration wells in Alaska. The company reported impairment costs of USD28.8 million.
Income for the period rose sharply to USD2.1 million from USD552,980, largely due to a tax gain of USD2.0 million. Corporate and administrative expenses fell sharply to USD78,550 from USD832,391.
The company continued farm-out discussions for Icewine during the period and in August announced that fellow London-listed firm Premier Oil PLC took a 60% interest in area A of the project. Drilling of one exploration well in the area is scheduled to begin in the first quarter of 2020.
88 Energy also began drilling at Winx-1 after receiving approval from Alaskan regulators.
The company did not propose a dividend for the six-month period.
Shares in 88 Energy were 8.2% higher at 0.73 pence each in London on Friday morning.
Related Shares:
88 EnergyPMO.L