Desire's losses reduce sharply
North Falkland Basin exploration company Desire Petroleum has seen interim losses reduce sharply following the completion of drilling and seismic activities.
North Falkland Basin exploration company Desire Petroleum has seen interim losses reduce sharply following the completion of drilling and seismic activities.
The group, which has an estimated 4% share of Rockhopper Exploration's Sea Lion discovery - the only worthwhile project in the Falklands area discovered so far - saw its operating loss for the first half of 2012 contract to $1.51m from $39.39m the year before. Last year's figures have been restated to reflect a change in accounting policy regarding exploration costs.
Loss before tax narrowed to $1.54m from $39.32m the year before, as exploration and evaluation expenses tumbled to $0.72m from $39.65m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
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
Despite making a loss, the tax man still grabbed $0.45m this year, pushing the post-tax loss up to $1.99m. The tax charge represent estimated provisions for the settlement of corporation tax liabilities arising in respect of investment revenues in prior years.
Loss per share was 0.58 cents versus 11.49 cents in the first half of 2011.
The group's cash resources at the end of June amounted to $12.7m.
"Recent developments have highlighted the exciting potential of the North Falkland Basin and it is Desire's intention to seek a high quality farm-in partner to help us capitalise on this potential, with our share in recent discoveries, material positions in well defined prospects and the exploration potential across our remaining acreage," said Stephen Phipps, Chairman of Desire.
A competent person's report covering the full prospect inventory derived from the total merged three-dimensional seismic data has accumulated will be available in the fourth quarter of 2012, with the company expecting this will continue to enhance its prospect inventory.
JH
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
-
Tesla and Alphabet announce results – should you invest in Big Tech?
How profitable are the world’s biggest tech companies? We share the latest so far this earnings season.
By Katie Williams Published
-
How working part-time in retirement could boost your pension by £87,000
Easing into retirement by working a few days a week could add thousands to your pension pot. We crunch the figures to see how working part-time can boost your pension po
By Ruth Emery Published