Africa-focused oil and gas exploration company Chariot Oil and Gas reported wider losses last year but was upbeat about its prospects for 2012 with the spudding of its Tapir South project expected by early April.
The company reported a pre-tax loss of $9.2m in the 10 months ended December 31st, steeper than the $7.3m loss reported in the longer 12-month period to February 28th 2011. Loss per share remained stable at $0.05. Chariot has changed its year-end date to the end of the calendar year.
The firm said that excluding foreign exchange losses and share-based payments, the loss reduced to $4.7m in the period, compared with $4.9bn previously.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Over the last 10 months the Company has worked hard to successfully position itself and ensure that it is fully prepared for the significant developments that the forthcoming year will bring," said Chairman Adonis Pouroulis. The group is looking to initiate its four to five well exploration programme (planned through to the end of 2013) will the drilling of Tapir South next month.
"Throughout the period, the portfolio has continued to grow with total gross mean un-risked prospective resources now estimated at 20.0bn barrels with 15 prospects and 16 leads - 11 of which were identified in the central blocks following the reprocessing and reinterpretation of previous data sets," he said.
Cash at February 28th 2011 was $9,2m, which rose significantly to $128.99m at December 31st of the same year, following a fund raising in April. "The company is in a position of strength, with a strong balance sheet, high quality joint venture partnerships and a good understanding of the technical merits of the hydrocarbon potential of the country," Pouroulis added.
In a separate statement, the firm said it had raised a further £30.8m after costs through the placing of over 18m shares at 170p per share. This represents an increase of 9.97% in the company's issued share capital.
Chariot said that it decided to issue a limited number of shares following a recent marketing trip to the US from which the company received strong interest from investors. "In view of continued volatility in global financial markets, the placing represents certainty and a reduced pricing risk compared to that of a widely marketed deal or one requiring shareholder approval."
Merchant Securities analyst Brendan Long said he was not surprised by the strength in demand for the shares. "It is just a matter of time before US investors focus thematically on junior oil companies that are drilling high-impact oil wells offshore Africa and the Falkland Islands." he said.
Chariot's shares were down 2.62% at 185.5p in mid-afternoon trade on Tuesday.
NR/BC
