(Alliance News) - Rockhopper Exploration PLC on Wednesday said a large impairment charge relating to the sale of Abu Sennan concession in Egypt resulted in a widened annual loss.
The North Falkland Basin-focused oil & gas explorer also said that it has implemented cost reduction process to scale-back headcount and activity at Sea Lion oil project pending an improvement in oil prices and virus situation.
For 2019, Rockhopper recorded a pretax loss of USD20.6 million versus a USD7.1 million loss a year ago. Impairment charges totaled USD10 million versus nil, related to Abu Senna concession.
The company in July 2019 sold its 22% working interest in Abu Senna licence to United Oil & Gas PLC for USD16 million.
Revenue for the year dipped to USD10.3 million from USD10.6 million. The reduction in revenue was attributed to the decline in realised oil and gas prices, partially offset by an increase in production.
Annual working interest production averaged approximately 1,284 barrels of oil equivalent per day, up from 1,064 barrels in 2018.
As of Wednesday last week, the company had cash resources of USD21.9 million.
Shares in the company were down 3.6% at 6.65 pence each in London on Wednesday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Rockhopper (RKH)