(Alliance News) - Petrel Resources PLC on Wednesday said its loss was many times smaller in 2018 after a substantial impairment the year before which did not repeat but expressed a great deal of pessimism, calling Irish offshore oil "a sorry scene".
Shares in Petrel were down 29% at 0.96 pence in morning trade.
The oil explorer incurred a EUR4.1 million impairment charge in 2017 after writing off its 20% investment in Amira Hydrocarbons Wasit BV. As no such impairment was made in 2018, Petrel's annual pretax loss was EUR239,042, attributable entirely to expenses and only a small fraction of its EUR4.4 million 2017 loss.
Nonetheless, Chair John Teeling's statement expresses clear frustration with changes to taxation laws, a push to outlaw offshore exploration, and difficulty obtaining drill permits.
Petrel has struggled to gain approval to take total ownership of Frontier Exploration licence 3/14 and extend the first phase, with almost a year needed to obtain consent.
"We have worked up the extensive data on the block and believe that we have a good package with which to attract a major but we have no time," said Teeling.
Teeling was hesitant to give guidance for Petrel's 30% interest in Ghana, where it has been waiting for the Tano 2A petroleum agreement to be ratified, but expressed some optimism given the new government's focus on oil development.
Moreover, Petrel has also had difficulties in Iraq, where political risk has offset promising oil geography. Sanctions and failures to obtain licences have prevented Petrel from achieving its ambitions.
Looking to the future, Teeling said: "Oil and gas grassroots exploration has proven to be an expensive experience for Petrel shareholders. There is little interest in the sector.
"Petrel has had a loyal following for decades but as the downward cycle in exploration share prices continues and intensifies even the loyalists lose hope. We continue to press of ratification in Ghana and continue to seek farm in partners for our offshore Ireland interests."
Petrel Resources (PET)