3rd Jun 2014 11:51
LONDON (Alliance News) - Baron Oil PLC Tuesday said it narrowed its losses in 2013 after booking significantly lower intangible asset impairment charges in the year, when compared to a year earlier.
The Latin America-focused oil and gas exploration and production company reported a net loss of GBP3.0 million in 2013, compared to a loss of GBP9.4 million in 2012, which it said was primarily as a result of significantly lower impairment costs compared to a year earlier.
Revenues for the year was GBP2.2 million, down from GBP2.8 million a year earlier due to a significant drop in revenues from its Colombian producing wells.
During the year, the group sold its entire stake in its subsidiary Plectrum Petroleum Ltd to Union Oil & Gas Group, which it said led to a book loss of GBP88,000 after taking into account the reversal of prior year impairment provisions.
Plectrum Petroleum Ltd is a 50% licence holder in the Peru Z34 offshore exploration licence and its sale forms part of the larger farm-out of an 80% interest in that licence.
"In taking hard decisions in impairing the carrying value of our assets, we now have a balance sheet that recognises clear value in our exploration and production assets. Coupled with the fact that the company is now carried on all its exploration commitments, we can expect to see positive results in both net income and cash flow in 2014 and beyond," the company said in a statement.
Baron Oil shares were trading 0.6% higher at 1.23 pence Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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