LONDON (Alliance News) - Spitfire Oil Ltd posted a widened pretax loss for the first half on Wednesday as it booked impairment charges on its assets.
Spitfire said its pretax loss widened to AUD460,906 in the six months to the end of December, compared to AUD183,983 a year earlier. The company does not generate any revenue.
The company booked a AUD261,191 impairment charge in the first half on its Salmon Gums ignite project in Western Australia. Ignite is another name for black coal.
The project is currently on hold and the company's retention licence for the project will expire in September 2016.
"Following the disastrous 2014 year for oil and gas prices, the trend tragically continued in 2015 with even further catastrophic falls in prices," said Chairman Mladen Ninkov.
"With the junior oil and gas equity markets effectively on life support and the projects available for acquisition economically unviable and the carrying costs unsustainable, the company has had little option but to preserve its cash holdings and look for projects in extractive industries which may have a long term future in a fast changing world," he added.
Shares in Spitfire were untraded on Wednesday, having last traded at 3.75 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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