21st Aug 2018 11:24
LONDON (Alliance News) - Argos Resources Ltd on Tuesday said its profit declined in the first half of 2018 due to foreign exchange losses.
The oil & gas exploration company said its profit declined to USD37,000 in the first six months of 2018 from USD81,000 reported for the same period a year earlier, as it booked loss on foreign exchange of USD19,000 versus USD37,000 gain the year before.
Administrative expenses also rose year-on-year to USD155,000 from USD142,000.
The company said it holds a 5% overriding royalty interest in licence PL001, which includes the North Falkland basin and where Noble Energy Falklands Ltd is the operator. Argos Resources also has a participation agreement between Noble Energy and licence partner Edison International SpA.
It did not report revenue in either period, but said it secures quarterly cash payments of UDS300,000 per annum from Noble Energy and Edison International. Argos Resources noted that these funds are sufficient to meet its ongoing costs.
"We believe that licence PL001 is well-positioned in a proven oil basin and contains a large inventory of attractive prospects," said Chairman Ian Thomson.
Shares in Argos Resources were up 1.5% on Tuesday at 6.34 pence each.
Related Shares:
ARG.L