Baron Oil posts an operating loss of £240,000 for the six months to the end of June compared with £995,000 a year ago.
Baron said that following the closure of its operations in Colombia, there was no revenue in the six months ended 30 June 2016 of (30 June 2015: £1,015,000; year to 31 December 2015: £1,048,000). The group said: "We continue our approach of impairing both exploration intangibles and goodwill, with a total impairment charge of £954,000 (30 June 2015: £1,000; year to 31 December 2015: £1,312,000), with £636,000 being attributable to the unsuccessful exploration well on Woodburn Forest and the remainder arising from our Peru activities.
"During the period, we have been able to reduce the impairment charge against receivables, giving rise to a credit to the P&L of £427,000 (30 June 2015: nil; year to 31 December 2015: charge of £163,000). "The aforementioned Supreme Decree approving the assignment of a 30% interest in Z-34 to UOGG enables us to recognise a receivable of US$2 million, this being a direct transfer of the value previously held in intangible assets.
"Administration expenses, excluding exchange differences, in the period were £528,000 (30 June 2015: £600,000; year to 31 December 2015: £1,137,000). Exchange differences gave rise to a gain of £460,000 in the period (30 June 2015: loss of £98,000, year to 31 December 2015: gain of £271,000); much of the company's assets are held in US Dollars and this gain reflects the weakening of pound sterling, particularly following the result of the EU referendum."
Other operating income of £355,000 (30 June 2015: loss of £150,000; year to 31 December 2015: income of £65,000) includes £304,000 arising on the cancellation of payables held since 2012.
After finance and tax, the company shows a net loss £183,000 (June 2015: £973,000; 2015 year: £2,210,000), representing a loss of 0.01p per share (June 2015: 0.07p; year to 31 December 2015: 0.15p).
At 9:52am: (LON:BOIL) Baron Oil share price was +0.05p at 0.53p