16th Oct 2013 08:37
LONDON (Alliance News) - Wessex Exploration PLC Wednesday said its pretax loss widened in its full year as administrative costs and impairment expenses hit the company.
The hydrocarbon exploration company with operations in South America, Africa and the UK is yet to post evenues and said that its pretax losses widened to GBP3.4 million from GBP1.6 million for the twelve months ended June 30.
The company's administrative costs increased to GBP1.9 million from GBP1.8 million, including a loss of GBP880,000 on non-cash items. The company said it begun implementing a non-project cost reduction programme.
Wessex said that the majority of its losses came from a GBP1.6 million impairment loss on its joint ventures, specifically its Guyane operations, where its Priodontes site was declared unsuccessful and abandoned in April.
The company also said that it has elected to conserve up to GBP1.5 million of cash resources by cutting its funding to the Guyane Maritime Venture and reducing its interest in the site to 1.1% from 1.25%.
Wessex's joint venture partner at the Guyane Maritime Venture, Northern Petroleum PLC, agreed to fund the shortfall, increasing Northern's interest in the site to 1.4%. Royal Dutch Shell PLC holds 45% of the site, Tullow Oil PLC hold 27.5% and Total hold 25%.
Wessex Exploration shares were down 5.3% to 0.805 pence, and Northern Petroleum shares were down 0.9% to 33.00 pence in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Tullow OilNOP.L