Chariot Oil & Gas annual losses widen following hefty impairment charge
Source - SMW
Oil and gas explorer Chariot Oil & Gas said its losses widened in the year to the end of December but confirmed it was in a robust financial position to pursue its new venture strategy as well as focus on maturing its remaining assets.
For the year to 31 December 2017, the group's loss after tax widened by $48.6m to $55.4m, compared with a $6.8m loss last year. The company blamed widening losses on an impairment charge of US$51.3m against previously capitalised costs in the Namibian Southern Blocks due its relinquishment in August 2017.
With $15.2m of cash at 31 December 2017, no debt and no commitments across the entirety of the portfolio, Chariot Oil & Gas said it was 'well funded.'
The drilling campaign initiated in the first quarter of 2018 revealed the Rabat Deep 1 exploration well was dry, the company said, adding that it was analysing results to understand the implications on targets within the surrounding area.
Chariot said it was funded to begin drilling of the Prospect S well, offshore Namibia, in the fourth quarter of 2018.
'We thus look forward to an exciting year with the continuation of the Company's drilling programme, providing additional value triggers and the possibility for Chariot's giant potential prospect inventory to be realised,' said Julian Maurice-Williams, Chief Financial Officer.
At 9:36am: (LON:CHAR) Chariot Oil Gas Ltd share price was +0.29p at 8.49p