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LONDON (Alliance News) - Tower Resources PLC Monday said its pretax loss significantly widened in 2014 because of a USD50 million impairment against some of its exploration wells and said it will focus on securing partners for its projects to reduce costs.
The company reported a substantial USD56.6 million pretax loss in its preliminary results for 2014, widening from a USD3.3 million loss a year earlier after the company booked USD50.6 million in impairments and spent more on pre-license expenditure.
Tower, which does not generate any revenue, booked the impairment on exploration wells in Namibia and Kenya. The company did not take any impairments in 2013. Pre-license expenditure totalled USD4.6 million in 2014 compared to USD1.3 million the year earlier.
At the end of December, Tower had a cash balance of USD7.9 million, which is lower than the USD17.5 million it had at the end of 2013.
"2014 was a very active year for Tower with a focus on de-risking and further diversifying our African portfolio into South Africa, Zambia and Kenya. We were all extremely disappointed with the result of the Welwitschia well offshore Namibia and, post-period, the onshore Badada-1 in Kenya. Both wells, however, had enormous potential for Tower, had been validated by first class partners, and have provided valuable information about the blocks which remain prospective," said Chief executive Graeme Thomson.
"We currently have limited commitments, and are exploring several opportunities to develop our portfolio further including our anticipated entry into the Dissoni block, offshore Cameroon. Tower will also continue to seek potential partners to share its exploration costs where desirable or necessary to move our most exciting prospects along faster," he added.
Tower shares were down 12% to 0.18 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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