Clontarf Energy slashes losses

The Irish-based oil and gas exploration company Clontarf Energy slashed its losses last year, but is set to further re-evaluate its asset portfolio.

New figures for the John Teeling-chaired company — which has its shares listed on London’s AIM index — show a 2011 pre-tax loss of just over £870,000 (€1.1m); well down on pre-tax losses of over £2.2m in the prior year.

The company’s losses per share also drastically reduced — from 2.96p in 2010 to just 52p last year.

Clontarf grew out of a merger two years ago of two other John Teeling companies — Pan Andean and Persian Gold — after part of the asset base of the former was acquired by Canadian firm Petro-minerales.

Since them, Clontarf has refined its asset portfolio to include Ghana, Bolivia, and Peru — having previously also had interests in Iran and the US, via the Gulf of Mexico.

While still active in those areas, Mr Teeling said yesterday the company will be focusing mainly on its Peruvian licences for the foreseeable future.

“The work done by Clontarf, since listing over a year ago, will provide long-term benefits to shareholders. At the time of listing, in Apr 2011, the principal assets of the company were in Bolivia and Ghana, but our focus is now on Peru,” he said.

Data from one of Clontarf’s two asset blocks in Peru has identified five leads and the firm is in early-stage discussions with joint venture partners.

However, Mr Teeling said global market conditions are slowing progress and investors “have yet to realise the value potential in the Peruvian assets”.

“Worries about growth rates in the BRIC economies [Brazil, Russia, India, and China] are having a negative impact on oil and gas prices. Of possibly greater importance is the total loss of confidence by investors in AIM-listed resource stocks. We’re in the midst of the worst bear market in AIM-listed resource shares since the start of AIM in 1995.

“Good news is downplayed and bad news is magnified. When confidence returns, markets will see significant uplifts. It is important that directors aren’t driven totally by short-term trends in share prices. Our task is to create long-term wealth for investors. Natural resource projects take time, but real wealth can be created.”