Clontarf in ‘uncertain place’ as losses mount

Irish exploration firm Clontarf Energy has reported a 145% jump in pre-tax losses to nearly £3.2m (€3.9m) for 2013, leading management to say the company is in "an uncertain place".

The Dublin-headquartered/ AIM-listed firm — which grew out of the 2010 sale of Pan Andean Resources and is focused on Ghana, Bolivia and Peru — also reported a jump in losses per share; from 65p to £1.59.

Administrative expenses went from £458,501 to £667,370 and impairment charges on exploration assets soared from £844,782 to nearly £2.5m.

“Clontarf Energy is going through a difficult time. The market for resource shares has been very challenging for some time, we have problems with our projects and our share price has suffered,” said chairman John Teeling.

Another major element in Clontarf’s share price falling to less than 50p is the Ghanaian government decision to grant an exploration licence over part of what Clontarf believes to be covered in its own Petroleum Agreement.

Mr Teeling said Clontarf is not without hope. “We believe we have substantial rights in Ghana, a belief bolstered by the decision of the High Court in Ghana granting an injunction. There is near-term potential in Peru and we hope to get a deal on our Bolivian interests,” he said.