20th Mar 2015 08:59
LONDON (Alliance News) - Chariot Oil and Gas Ltd Friday reported a wider pretax loss in 2014 after making a large impairment against assets in Namibia, but said its strong cash balance will allow it to fulfil all of its commitments and pursue new opportunities.
The oil and gas exploration company does not currently generate any revenue and is exploring assets offshore Morocco, Mauritania, Brazil and Namibia.
Chariot reported a significantly wider pretax loss of USD41.8 million for the year ended December 31, from a USD10.6 million loss in 2013 on the back of a USD33.6 million impairment charge against the Namibian northern blocks.
At the end of the year, it had USD53.5 million in cash and was debt free and said it is fully funded to fulfil all of its commitments and continue pursuing additional opportunities.
Chariot is seeking potential partners for its portfolio in order to share the risk and reduce exploration expenditure.
"Current market conditions in the oil and gas industry are challenging, and we will look to manage those that affect our business accordingly, but we also see this as a time of real opportunity for well funded and well positioned companies such as Chariot," said Chief Executive Larry Bottomley.
"We will continue to progress our existing portfolio, as well as look to capitalise on our position of strength and take advantage of prospective assets that have the potential to create shareholder value over the longer term," he added.
Chariot shares were up 7.0% to 8.77 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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