LONDON (Alliance News) - Clontarf Energy PLC Wednesday said its pretax loss narrowed in 2014 after the company did not book any impairments and cut costs, as it continues to dispute an area claim in Ghana while hoping to avoid litigation, which it said would be "time consuming, tedious and expensive".
Clontarf shares dropped 20% to 0.600 pence per share Wednesday morning.
The oil and gas exploration company focused on Ghana reported a pretax loss of GBP274,196 in 2014, significantly narrower than the GBP3.2 million loss it made in 2013 as it booked fewer impairments and cut costs.
Clontarf did not book any impairments in 2014 compared to a total of GBP2.5 million in 2013 and administrative expenses fell to GBP244,303 in 2014 from GBP667,370 in 2013.
The primary focus of Clontarf is on the Tano 2A block offshore Ghana in which it has a 60% stake. Clontaf is currently disputing an award issued by the government of Ghana to an American company which is Nigerian operated, CAMAC, which saw CAMAC awarded a license which covers around a third of Clontarf's Tano 2A block.
Although the government has offered a resolution to Clontarf, the company said "none of the options offered by the state are acceptable" as talks continue.
"Clontarf has survived and will continue to survive. We are very comfortable that we have a legal position in Ghana. Litigation is time consuming, tedious and expensive. It is a last resort. Having been to the courts in 2014, we are reluctant to repeat the process but it may be necessary," said Chairman John Teeling.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Clontarf (CLON)