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
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 for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?
Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
By Kalpana Fitzpatrick Published
-
What does Rachel Reeves’s plan for growth mean for UK investors?
Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
By Katie Williams Published