(Alliance News) - Chariot Oil & Gas Ltd on Wednesday said its loss narrowed in 2019 and it intends to preserve cash going forward due to coronavirus uncertainty.
The London-based exploration company said pretax loss in 2019 was USD4.0 million compared to USD15.1 million loss reported a year earlier, thanks to non-repeat of GBP10.9 million impairment of exploration asset.
Administration expenses, meanwhile, remained broadly stable year-on-year at USD3.4 million.
Chariot did not generate any revenue during the year as it currently at the exploration stage. It holds exploration licences covering two blocks in Namibia, three blocks in Morocco and four blocks in the Barreirinhas basin, offshore Brazil.
"Whilst the early part of 2019 marked a shift in the balance of our portfolio, with the addition of the Lixus licence, the latter half of 2019 and the start of 2020 has seen the company re-prioritise its strategy, accelerating efforts towards monetising a major gas development project in Morocco. The asset has the potential to deliver near term cashflows and delivers a more suitable fuel source for global economies looking to transition to less carbon-intensive energy sources. This re-focus has coincided with the impact of Covid-19 on the economic and operational environment," said Chief Executive Larry Bottomley.
"Chariot was able to respond quickly and implemented an extensive cost-reduction programme to restructure the organisation, ensuring the retention of key skills and the operating capability to deliver on Lixus, whilst enabling the business to preserve cash," added Bottomley.
Going forward, the company said it intends to seek project endorsement, asset validation and de-risking through partnering.
AIM-listed Chariot shares were trading 3.6% lower in London on Wednesday at 2.02 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Chariot Ltd (CHAR)