AEN.L Share News (AEN)

Latin American energy group Andes Energia is proposing to split itself in two, thereby creating two quoted companies, one focused on exploration and production activities and the other on electricity production. In an update on its exploration activities the company said it had succeeded in discovered oil and gas at new wells in its Mata More and Corralera blocks in Argentina's Neuquén basin.Karelian Diamond Resources saw its loss before tax narrow to €84,692 in the six months to the end of November from €88,124 the year before. The Finnish company has no revenue at present. It ended the reporting period with cash and cash equivalents of €0.20m, down from €0.75m six months earlier. The company said it has had positive results from a basal till sampling programme on itsRiihivaara target in the Kuhmo area, near the Company's 6.9 hectarediamondiferous Seitaperä kimberlite pipe in Eastern Finland. The resultssuggest that a diamondiferous kimberlite pipe or dyke is likely to exist in theRiihivaara area, the company said.Another diamond company, Petra Diamonds, also racked up a half-year loss, though at least the company has some revenue coming in. Loss before tax was $26.7m in the second half of 2011, versus a profit the year before of $24.5m, as profits were hit by paper losses of $35.7m on foreign currency. The group said around $16m of the foreign exchange losses have reversed since the end of the reporting period as the South African rand has rallied against the dollar. Revenue rose 13% to $101.4m from $90.0m at the interim stage the year before. Cash in hand at the end of the year had risen to $45.1m from $20.8m at the end of 2010. The group said production in the second half of the financial year is expected to be much higher than it was in the first half, which should lead to much higher revenues, barring a collapse in diamond prices.