18th Mar 2019 15:36
LONDON (Alliance News) - Argos Resources Ltd on Monday said that its annual profit multiplied significantly as it received the full amount of income due under a licence agreement.
For 2018, the exploration company focused on the North Falkland Basin posted a profit of USD406,000, significantly increased compared to USD118,000 a year ago.
The increase in profit is due to the recognition of the full amount of the income due under the licence participation agreement for the year, as Argos is contractually entitled to the income under the termination clause of the agreement, Argos explained.
Looking ahead, Argos said it will continue receiving quarterly cash payments from Noble Energy Falklands Ltd and Edison International Spa of GBP75,000 per quarter, until December 2019, despite the two company's withdrawal from the production licence PL001 back in October.
"These payments, together with current cash balances of USD788,000 at year end 2018, leave the group adequately financed for at least twelve months beyond sign-off," Argos added.
Argos Resources shares were trading down 13% at 2.62 pence each.
Related Shares:
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