Chariot Oil & Gas posts a a loss of US$5.4 million for the six months ended 30 June compared to US$4.4 million for the six months ended 30 June 2015.
The increase in loss is primarily due to the relinquishment of the C-19 licence in Mauritania resulting in a US$5.2 million impairment against previously capitalised costs.
This was partly offset by a reduction in other administrative expenses and, included within finance income, an unrealised foreign exchange gain, due to the strengthening of the Brazilian Real, on cash held as security against licence work commitments.
Other administrative expenses of US$2.0 million, which includes the costs of reducing head count announced in May 2016, are lower than last year (30 June 2015: US$2.5 million) mainly due to the 50% reduction in Board remuneration from May 2015 combined with other cost savings.
Share-based payments charges of US$0.4 million are lower than the US$0.6 million incurred for the six months ended 30 June 2015 due to the vesting of historic awards of employee deferred shares.
Net cash outflow from operating activities before changes in working capital of US$2.0 million is lower than the US$2.3 million for the six months ended 30 June 2015 due to cost savings in other administrative expenses.
Chief executive Larry Bottomley said: "Chariot continues to pursue its strategy of acquiring frontier acreage, maturing the portfolio and partnering to drill to create transformational value for shareholders through the discovery of material reserves.
"In the reporting period, we have secured the Mohammedia exploration permits in Morocco, matured the portfolio in those permits and the Southern blocks of Namibia, acquired extensive 3D seismic programmes in Namibia and Brazil, and successfully secured a drilling partner with Eni in the Rabat Deep permits in Morocco.
"Capital discipline is an ongoing focus and the strength of our approach to this, which has enabled the ongoing development of our asset base, is reflected in our cash balance. "Our technical work over the last few years has laid the foundations of a strong company with a portfolio of assets capable of delivering transformational growth. The next phase across our portfolio is to create value with the drill bit and our aim is to partner with a target of drilling three wells within the next two years."
At 4:25pm: (LON:CHAR) Chariot Oil Gas Ltd share price was +0.14p at 5.96p