(Alliance News) - Cluff Natural Resources PLC on Monday said costs relating to relinquishment of a North Sea licence resulted in a sharply widened interim loss.
For the six months to June 30, the investment company's pretax loss more than doubled to GBP1.6 million from GBP794,481 in the first half of 2018.
Total administrative expenses rose sharply to GBP1.6 million from GBP795,000, driven by a GBP801,307 impairment expense following relinquishment of Licence P2248.
Cluff did not generate revenue - like in the first half of last year - and did not declare a dividend. The company added that it intends to "deliver shareholder returns principally through capital growth" but could distribute dividends once its investment portfolio matures and it generates revenue.
Cluff farmed out interests in two of its key licences to Royal Dutch Shell PLC during the first half. The oil major acquired a 70% interest in Licence P2252. It was also given a 50% share of Licence P2437 and committed to paying 75% of the costs capped at USD25.0 million.
Cluff said it has launched a farm-out process for the Dewar Prospect in the Central North Sea and added that a number of parties, including major companies, have expressed an interest.
An equity fundraise of GBP15.0 million was completed in June, ensuring the company is fully-funded until the end of 2021, Cluff said. The firm placed 854.3 million new ordinary shares, at a price of 1.75 pence.
Chair Mark Lappin said: "The past six months have been transformational for the company with it delivering a number of significant steps towards its goal of becoming one of the leading exploration-focused companies working in the UK Continental Shelf.
"With a world-class hydrocarbon province, long term national demand and a leading regulatory regime in the UK, the future is bright for companies such as ours with good exploration prospects and a world-class business partner."
Shares in Cluff were 0.2% lower at 1.42 pence each in London on Monday morning.
