(Alliance News) - Andalas Energy & Power PLC on Thursday said its annual loss was three times wider as a result of much higher asset evaluation expense.
The oil and gas firm, which has its registered office in the Isle of Man, posted a USD3.9 million pretax loss for its financial year ended April 30, three times that of its USD1.3 million loss the year before.
This was almost entirely due to asset evaluation expense, which ballooned to USD2.3 million from only USD282,000 the year before. This was coupled with a USD524,000 unrealised loss on investments versus nothing the year before, and a 25% rise in other administrative expenses to USD1.1 million from USD879,000.
Andalas is focused on developing upstream assets in both Indonesia and the UK. However, while it had been looking to acquire an interest in the Bunga Mas production sharing contract in Indonesia, conditions for the acquisition were not met. While the deal has not been terminated, Andalas's directors think it unlikely to proceed.
In the UK, the firm has a 25% Eagle Gas Ltd stake. Eagle Gas had an indirect interest in the Badger prospect in the North Sea. However, this did not meet objectives as neither the operator nor joint venture partners could raise enough funding. The licence was relinquished back in March and Andalas has written it off.
Also in the UK, the 98/11a-5 appraisal well at the Colter prospect - in which Andalas's farm-in interest is 8% - was spudded but results were somewhat disappointing.
"Initial evaluation of the data from both wells indicates that the Colter prospect is smaller than pre-drill estimates. However, the Colter South discovery remains an opportunity to evaluate further as it is now a really more extensive than indicated by the pre-drilling mapping. The data from these well results and existing data will be incorporated to determine the best forward plan," said Andalas.
Shares Andalas were down 2.9% at 0.17 pence in London on Thursday.
By Anna Farley; annafarley@alliancenews.com
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