23rd May 2023 14:40
(Alliance News) - Baron Oil PLC on Tuesday reported a widened annual loss last year despite reduced expenses and said it was entering "a decisive phase of operations" as it continues searching for new venture opportunities.
The London-based oil and gas exploration and appraisal company reported a pretax loss of GBP1.4 million for 2022, compared with GBP1.1 million for the previous year. It reported no revenue for either 2022 or 2021.
Baron had cash reserves of GBP5.8 million at December 31, up from GBP1.7 million at the same time a year prior.
Meanwhile the company's administration expenses decreased 9.8% to GBP1.2 million from GBP1.3 million. Exploration and expenditure expenses slightly decreased by 2.3% to GBP213,000 from GBP218,000.
Operational highlights during 2022 included intensive technical work on its Chuditch PSC and Dunrobin projects, with seismic reprocessing and geochemical studies for Dunrobin delivered on time and within budget during the second half year.
Baron also completed a detailed seismic attribute analysis earlier this year to investigate candidate direct hydrocarbon indicators.
Going forward, the company said it has a "well-funded" balance sheet to cover its current activities thanks to two oversubscribed funding events in 2022. It continues to proceed with caution on its asset impairment policy and says it will keep taking a prudent approach to potential new capital expenditures.
"2022 was a year of considerable progress for Baron," Non-Executive Chair John Wakefield commented. "Both [Chuditch and Dunrobin] assets continue to attract attention via our active farmout campaigns and presentations at relevant industry events. In particular, there are a number of ongoing discussions with third parties regarding participation in the Chuditch appraisal well and future activities."
Shares in Baron Oil were 4.2% higher at 0.099 pence in London on Tuesday.
By Emma Curzon, Alliance News reporter
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