(Alliance News) - Baron Oil PLC on Friday announced its pretax loss widened, largely due to an increase in administration fees, but sees "encouraging" signs that the industry is beginning to move again following Covid-19 disruptions.
The oil and gas exploration company focused on the UK and Peru posted a pretax loss of GBP705,000, widening from GBP307,000 a year prior.
Administration fees increased to GBP367,000 from GBP227,000 the year before. Baron Oil said that the increase in administration expenses was largely due to higher professional fees related to fund raising activities which includes legal, registrar and corporate advisory costs.
In Peru, the company intends to push on with drill the El-Barco-3X well once restrictions are lifted.
In the UK, the company has two projects. For the first, at Inner Moray Firth, the seismic field data has been located, copied and is being validated. The company said it is looking forward to receiving the results of the studies being carried out by the large European exploration and production company in due course.
In Dorset, work continues on PEDL330 and PEDL 345.
In Timor-Leste, work on the Chuditch PSC has been progressed as far as possible in the absence of the original raw seismic data but the problem is being dealt with, the company said.
Executive Chair Malcolm Butler said: "There are encouraging signs that industry activity is beginning to move again, although oil and gas prices remain depressed. We are pleased that the seismic data on the Dunrobin area has finally been located, enabling reprocessing work to take place.
"Once the Covid issues have been resolved, we believe the drilling of El Barco-3X should be able to move forward. The situation in Timor-Leste is very frustrating but we will keep shareholders informed of progress."
Baron Oil shares were down 16% at 0.090 pence each on Friday morning in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Baron Oil (BOIL)