1st Apr 2019 10:22
LONDON (Alliance News) - Borders & Southern Petroleum PLC on Monday reported a steeper annual loss compared to the prior year due to finance costs.
Borders & Southern Petroleum shares were trading down 5.2% at 1.99 pence each.
For 2018, the Falkland Islands-focused oil & gas exploration company posted a pretax loss of USD2.0 million compared to USD1.2 million a year ago.
Administrative expenses, accounting for the majority of the loss, rose to USD1.8 million from USD1.7 million.
Furthermore, the firm's finance income dropped to USD29,000 from USD542,000, while it incurred finance expense of USD193,000 versus nothing a year ago,
"The year ending December 31 2018 was a relatively frustrating period for the company," Chief Executive Howard Obee said.
"We started the year on an upbeat note, reporting on an independent evaluation of our 100%-owned Darwin gas condensate discovery that highlighted a substantial increase in the estimation of recoverable liquids.
Obee added: "However, our main objective of the year was to secure partners to help fund the next phase of operations in the Falkland Islands. We worked hard to achieve this, but unfortunately the farm-out process is taking longer than we had hoped, for reasons largely outside our control, such as the wider oil & gas industry's reduced capital expenditure on offshore projects and on alternative geographical focus areas."
Looking ahead, the company said the farm-out process will continue to remain its main focus for the coming months.
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