(Alliance News) - Cluff Natural Resources PLC on Thursday said its pretax loss widened in 2019 following an impairment on the relinquishing of Licence P2248.
Cluff reported a GP2.4 million pretax loss for 2019, widened from GBP1.7 million the year before as administrative expenses climbed to GBP2.5 million from GBP1.7 million.
This resulted predominantly from an GBP801,307 impairment charge after the preferred bidder on Licence P2248 in the North Sea failed to demonstrate the financial capacity to fund forward work within the needed timeframe.
The licence was relinquished in March 2019 and the exploration assets relating to the licence were fully impaired. No such impairment was recorded in 2018.
Chief Executive Graham Swindells said: "Despite the effects of Covid-19 and commodity price volatility, given the company's low overheads, no debt, and its attractive portfolio of prospects, we remain in a strong position from which to deliver exceptional growth."
"We have a number of key drivers of value as we continue to work with Shell towards firm well commitments on both Selene and Pensacola, the ongoing farm-out of Dewar, the progression of our other gas licences and the potential award of additional licences in the latest UK licensing round. Achievement of each of these would be a major driver of value and we look forward to updating shareholders in due course."
Shares in Cluff were up 3.2% at 0.80 pence in London on Thursday afternoon.
By Anna Farley; annafarley@alliancenews.com
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