(Alliance News) - Anglo African Oil & Gas PLC said Friday its pretax loss widened in 2018 on higher costs and the impairment of assets, while revenue more than halved in the year.
Shares in Anglo African Oil & Gas were 17% lower at 5.00 pence on Friday.
The oil & gas company reported a pretax loss of GBP11.7 million for the year, compared to GBP3.1 million the year before.
This was due to almost doubling in administrative expenses to GBP5.1 million from GBP2.8 million, on higher wages and salaries, social security and acquisition costs.
In addition, Anglo African incurred total impairments of GBP6.4 million, mainly related to the wells on its 56%-owned Tilapia oil field in the Congo.
The company reviewed the carrying value of well TLP-101 and TLP-102, and came to the conclusion that it was unlikely that the wells would ever on a standalone basis be commercially viable. Meanwhile, an impairment on the TLP-103C well on the same field was taken following the expenses incurred from delays to the drilling campaign, due to the poor condition of the drilling rig.
Revenue for 2018 was GBP133,503, down from GBP226,757 in 2017.
Looking ahead, Anglo African said it will focus on developing the Tilapia field further to significantly increase its oil production, the first step of which will be commencing production from TLP-103C, which completed drilling operations in January.