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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021