Irish oil and gas exploration company Petrel Resources said it has “sufficient” funds to cover activities for the “near future” despite seeing losses widen by nearly 13% over the past 12 months.
The John Teeling-chaired company, which has assets offshore Ireland and in Africa, yesterday reported pre-tax losses of €256,505 for 2016; up from a loss of €227,234 in 2015.
The company’s asset value slipped marginally to €6.7m from almost €6.9m at the end of the previous year.
Regarding its assets, Petrel said: “Some have problems but all have great potential. We hope the revived interest in offshore Ireland will be rewarded with a successful discovery [Providence Resources and partners are due to begin drilling off the west coast later this month].
The money we received from selling our Iraqi interest has sustained Petrel. Shareholders have not had to provide fresh capital. We have sufficient funds for the near future.”
The company said it remains of the opinion its outstanding dispute in Ghana — over lost acreage and land replacement — will be solved, in conjunction with the country’s new government before the end of 2017; ahead of the company seeking development partners for the project sometime next year.
Petrel is also hopeful of “a favourable outcome” from ongoing legal action against Australian oil company Woodside.
Petrel sued Woodside, claiming the Australian company failed to honour the terms of an exploration deal between the two parties by not carrying out a 3D seismic survey in the Porcupine Basin off the Kerry coast.
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