27th Feb 2015 10:15
LONDON (Alliance News) - Kea Petroleum PLC on Friday reported a significantly wider pretax loss for 2014 due to write-off taken on the Wingrove and Douglas wells in New Zealand.
The company said its pretax loss for the year to the end of November was GBP8.5 million, compared to a GBP1.1 million loss a year earlier.
The wider loss was down to a GBP7.5 million writedown taken on the exploration costs related to the Douglas and Wingrove wells.
Revenue for the year fell to GBP831,000 from GBP1.2 million last year.
Kea launched a strategic review in February this year as the oil and gas exploration company focused on New Zealand struggled amid the current oil price environment. Its Puka site was shut-in in January, and the company said it remains in farm-out talks on its Mercury, Mauku and Shannon prospects, but warned the farm-out environment is very challenging at present.
"Whilst Kea was making progress in the Taranaki Basin and continues to have some highly prospective opportunities, the unexpected and fundamental change in the oil price environment has created too many challenges for our business," said Kea Chairman Ian Gowrie-Smith.
"Consequently, we launched a strategic review last month with the objective of considering all options for maximising shareholder value. We are still early in that process, and we will update shareholders in due course," Gowrie-Smith said.
Shares in Kea were down 5.1% to 1.258 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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