23rd Sep 2019 11:31
(Alliance News) - Argos Resources Ltd on Monday swung to an interim loss and said it is adequately financed for the next 12 months as it continues to receive quarterly cash payments from two companies that withdrew from a production licence.
Shares in the company were 9.4% lower at 2.31 pence each in London on Monday morning.
For the six months to June 30, the London-listed firm reported a loss of USD176,000 from a USD37,000 profit in the first half of 2018.
It generated no revenue and did not book a repeat of USD209,000 in "other income" that it reported in the same period last year. Also, contributing to the swing to loss was a 13% rise in administrative expenses to USD175,000 from USD155,000.
The oil & gas exploration company said it is continuing to receive GBP75,000 quarterly payments from Noble Energy Falklands Ltd and Edison International SPA after the two companies in October 2018 notified Argos that they intended to withdraw from the PL001 production licence in the North Falkland Basin.
Argos said: "These payments, together with current cash balances of USD784,000 at June 30, leave the group adequately financed for at least twelve months beyond sign-off."
The second phase of the licence expires in November, Argos said it is in discussions with the Falkland Islands government to extend the permit.
Related Shares:
ARG.L