Petrel Resources booked a substantially deeper annual loss after it wrote down the value of assets in Iraq.
Pre-tax losses amounted to €4.4m, compared to €0.3m of red ink a year earlier, and included a €4.1m impairment on the Iraq assets.
The company bought into Iraq in 2013 with the expectation that individual provinces would be able to offer licences in their own right.
However, this never happened, the company said.
Petrel said it would continue to work on its prospects offshore Ireland and Ghana.
'We will once more dip our toe into opportunities in the Middle East,' it said.
At 1:55pm: (LON:PET) Petrel Resources PLC share price was -0.2p at 2.1p