Trapoil widens annual losses, blames impairments

Trapoil on Thursday posted an annual loss as the oil and gas explorer was hit by impairment charges from unsuccessful licences in the UK.

Trapoil on Thursday posted an annual loss as the oil and gas explorer was hit by impairment charges from unsuccessful licences in the UK.

The group widened its 2012 loss before tax to £10.9m from the previous year's £4.5m, reflecting a non-cash impairment charge of £6.8m after relinquishing Inverewe, Lytham and Sienna licences and the Magnolia exploration well in the UK.

Technical and employment costs of developing projects to the drilling stage also impacted results.

Nevertheless, Trapoil generated £1.7m revenue, compared to £0.8m in 2011, driven by partnerships with Suncor and Noreco and production income from the Lybster field in the North Sea. First oil production of 50,027 barrels was achieved from Lybster.

Cost of sales of £9.8m were incurred in supporting assets including Lybster, up from £0.8m the year before.

"In a very challenging industry and market environment, Trapoil has successfully established strong foundations for further growth via the sizeable corporate, asset and financing transactions executed since its IPO [initial public offering]," said Chief Executive Officer Mark Groves Gidney.

"We will endeavour to commercialise our existing discoveries and continue to build exciting exploration programmes as we look forward to the further opportunities ahead."

Shares fell 3.51% to 13.75p at 11:06 Thursday.

Recommended

Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Three hidden gems from Japan’s overlooked stockmarket
Share tips

Three hidden gems from Japan’s overlooked stockmarket

Professional investor Eiji Saito of JPMorgan’s Japan Small Cap Growth & Income fund picks three promising stocks from Japan's vibrant but under-resear…
13 Sep 2021
Share tips of the week – 10 September
Share tips

Share tips of the week – 10 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
10 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
How you can profit from the power of the grey pound
Share tips

How you can profit from the power of the grey pound

Higher life expectancy and surging asset prices have proved a boon for the baby-boomer generation, which has accumulated vast wealth. Younger generati…
10 Sep 2021