Chariot Oil & Gas posted an annual loss on Wednesday following an impairment charge on an oil well in Namibia that was plugged and abandoned.
The Africa-focused oil and gas company incurred a pre-tax loss of $88.6m for the year to the end of December 2012, compared to a loss of £9.1m for the 10 months ended December 31st 2011.
Chariot said the loss reflected an impairment of $80.8m on the Tapir South well and higher administration costs which came to $7.5m, up from $5.6 the previous year, due to a shorter accounting period and organisational restructuring expenses.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
However, the firm remained debt free with cash balances of $68.3m as it progressed on projects including farm-out agreements with BP and PGS.
"This past year has seen the company take some bold steps forward which have served to further develop our asset base on a number of levels," Chairman Philip Loader said.
"We now have a strong foothold in three very interesting geological provinces for oil and gas exploration and have created a portfolio that contains a variety of regional plays; exploration success in any of these regions has the potential to deliver transformational value to the stakeholders in Chariot. We look forward to continuing our work and taking these assets through the value curve."
In the pipeline this year is preparation on projects in Namibia, Mauritania and Morocco for offshore drilling in 2014, 2015 and 2016, respectively.
How much could your cash ISA save you in tax?
Official data reveals ISAs will collectively save us an estimated £6.7 billion in tax this year. We’ve crunched the numbers to find out how much a cash ISA could save you
By Vaishali Varu Published
The 8% pension rule: what is it and is it enough to retire on?
You are probably saving this amount into a pension each month without even realising with the 8% pensions rule. But is what is this and is it enough to give you a comfortable retirement?
By Ruth Emery Published