(Alliance News) - Red Emperor Resources NL on Monday posted a heavily widened annual loss after a write-off of its Nanushuk project in Alaska.
Shares in Red Emperor were down 6.1% at 0.53 pence in London in morning trade.
Red Emperor wrote off AUD8.4 million - about USD5.8 million - after drilling the Winx-1 well in March, with wireline results showing "low oil saturations in the Nanushuk Topsets not conducive to successfully flowing the formation". Exploration and expenditure written off in the previous financial year came to only AUD24,389.
Although Red Emperor is planning to further evaluate Nanushuk's potential, it has opted to write down the exploration and evaluation expense on the asset to zero.
Consequently, the firm's pretax loss for its financial year ended June 30 was AUD10.3 million, many times wider than the AUD690,097 loss posted the year before.
In August, after the end of its financial year, Gracjan Lambert resigned as Red Emperor chief executive. No successor has been named as yet.