30th May 2018 10:36
LONDON (Alliance News) - Shares in Clontarf Energy PLC dived on Wednesday as it reported a significantly widened loss in 2017 caused by a write-down of assets in Peru.
The stock was trading 32% lower at 0.23 pence per share on Wednesday.
The Ghana-focused oil and gas explorer posted a pretax loss of GBP2.8 million for 2017, widened from GBP199,628 reported the prior year. The company generates no revenue as it is currently at an exploration stage.
Administrative costs rose to GBP226,410 during the year from GBP199,628 a year earlier.
Clontarf said political uncertainty and changing policies continue to bedevil exploration in Peru.
Union Oil, the company's Peruvian partner, returned Block 183 to the government after failing for three years to obtain necessary permits. As a result the company was left without assets in Peru and has written off its residual investment of GBP2.5 million.
"The collapse in the oil price has seen a serious cut in discretionary expenditure as management scramble to reduce debt," said Chairman John Teeling.
"Of course this must change as oil fields run out and supply becomes sluggish while demand continues to grow," Teeling continued. "But, explorers such as Clontarf have to survive and hold on to their ground until the majors are ready to move. "
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