Chariot Oil & Gas annual results hit by impairment charge

Chariot Oil & Gas posted an annual loss on Wednesday following an impairment charge on an oil well in Namibia that was plugged and abandoned.

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.

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.

RD

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Could gold be the basis for a new global currency?
Gold

Could gold be the basis for a new global currency?

Gold has always been the most reliable form of money. Now collaboration between China and Russia could lead to a new gold-backed means of exchange – g…
22 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Paypal, bitcoin, and the weaponisation of money
Bitcoin & crypto

Paypal, bitcoin, and the weaponisation of money

Recent events have shown how both business and governments can “weaponise” money and shut down dissent. What to do? Buy bitcoin, says Dominic Frisby.
22 Sep 2022