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(Alliance News) - Tower Resources PLC on Wednesday posted a narrowed loss for 2019 due to absence of impairment charges, but the Africa-focused oil and gas firm said it endured a "challenging" 2019 with the new year not providing any respite either.
In 2019, Tower Resources reported a pretax loss of USD2.7 million, trimmed from USD3.8 million loss a year ago. Like last year, it reported no revenue.
The loss in 2019 was largely down to other administrative expenses, which surged to USD2.2 million from USD1.0 million. But there were no impairment costs in 2019, compared with USD2.8 million in 2018.
Tower Resources has sole ownership of the Thali asset in Cameroon, as well as blocks 40 and 41 in Zambia.
"2019 proved to be a challenging year and so far 2020 has been even more challenging, in ways which have affected everyone in our industry and in most other sectors. The impact on oil demand of the Covid-19 lockdowns was dramatic and, at least in recent history, unprecedented, and the potential for a simultaneous price war among the OPEC nations and Russia initially exacerbated the problem," Chair & Chief Executive Officer Jeremy Asher said.
"Fortunately, the dramatic collapse in prompt oil prices resulted in rapid action to cut production by both governments and private companies. The potential for a second wave of Covid-19 infections remains a concern, but the market for prompt delivery is now stabilising and much improved, with Brent for August 2020 delivery now trading at around USD40 a barrel."
Shares in the company were 3.9% lower at 0.40 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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