PAN ANDEAN, the Dublin-headquartered oil and gas exploration company, has reported its first losses in a decade, on the back of falling gas prices in the US.
The company – which recently announced that it is close to selling its Peruvian and Colombian mining assets to Canadian company, Petrominerales – reported a £37,000 (€41,600) pre-tax loss for the six months to the end of September.
This was down from a pre-tax profit of £618,000 (€696,300) for the same period last year.
Pan Andean is listed on the Alternative Investment Market (AIM) in London and plans to re-list on AIM, under the new name of Hydrocarbon Exploration, after the Petrominerales deal is completed in February.
The £19m offer being made for Pan Andean’s assets – the Irish company will hold onto its interests in the US (Gulf of Mexico) and Bolivia – is also allowing current shareholders keep a stake in the remaining company.
Indeed, despite yesterday’s first half loss figure, Pan Andean’s share price has held firm at 15.25%, which is an 18 month high for the stock.
“By selling our Peruvian and Colombian portfolio, we’re able to hand back £18m to investors, while there is significant potential value in the remaining assets,” Pan Andean chairman John Teeling said.
© Irish Examiner Ltd. All rights reserved