LONDON (Alliance News) - BowLeven PLC Wednesday said its pretax loss significantly widened in the first half of the 2015 financial year after it recorded a massive impairment charge, but the company reported a strong cash balance with no debt after completing the farm-out of its Etinde development project.
The Africa focused oil and gas company, which does not currently generate any revenue, said its pretax loss for the six months ended December 31, widened to USD81.0 million from only USD6.6 million in 2013 after it made the impairment.
The USD76.0 million impairment was made to reflect revised commodity price and planning assumptions for the company's Etinde development project in Cameroon.
The Etinde development is the company's main focus. BowLeven holds a 20% interest in the project after divesting some of its stake to LUKOIL and NewAge during the year.
As a result of that farm-out, the company reported a cash balance of USD155 million with no debt on March 24.
"Following completion of the Etinde farm-out, we are well positioned, with a strong financial foundation, to take the business forward. The group is looking forward to participating in four potentially significant exploration and appraisal wells over the next 12 to 18 months," said Chief Executive Kevin Hart.
Over the next 12 months, BowLeven said it will focus on drilling the Etinde project with its joint venture partners and complete its two exploration programme on the Bomono permit, also in Cameroon.
BowLeven shares were down 6.3% to 30.00 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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