Global Petroleum Ltd shares plunged on Friday, despite reporting annual profit narrowing, as cash reserves have fallen significantly across the year.

In the financial year that ended June 30, the Africa and Mediterranean focused oil and gas explorer said pretax loss narrowed to $1.3 million from $1.6 million a year earlier. The group currently posts no revenue.

However, cash at the end of the year fell to $356,389 from $1.1 million a year earlier, improving mildly to $376,000 as of Monday, which Global Petroleum said reflected an £250,000 equity raise in August.

Global Petroleum said its strategy remains focused on maximising its gearing to exploration success via the acquisition of early licence positions in frontier exploration areas in Africa and the Mediterranean, either directly through licence rounds, joint venture arrangements or acquisitions.

‘The company continues to explore all strategic alternatives in order to preserve and maximise shareholder value. In order to facilitate this, the urgent priority for the company is to strengthen its finances in the very near future,’ Global Petroleum said.

Shares in Global Petroleum were down 35% at 0.075 pence each in London on Friday afternoon.

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