(Alliance News) - Upstream gas company Sound Energy PLC on Thursday reported a widened pretax loss in 2019 amid an absence of foreign exchange gains.
Sound's pretax loss stretched to GBP16.4 million from GBP11.7 million.
Exploration costs rose 62% to GBP6.6 million from GBP4.1 million, and Sound Energy swung to a foreign exchange loss of GBP1.1 million from a GBP3.4 million gain in 2018.
"The year ending December 31, 2019 has been a challenging one for the company and saw us refine our strategy to deliver value from our Moroccan assets. The board took a decision following our exploration campaign in late 2018 and early 2019 to explore options on monetising our Tendrara production concession, the Greater Tendrara petroleum agreements and the Anoual permits," Sound Energy said.
"At the time of issuing the annual report and accounts there are unprecedented societal and market conditions following Covid-19 virus outbreak which increases the risk that there could be delay in the company's micro-liquified natural gas strategy implementation which could impact the company's liquidity."
Sound Energy said it may utilise financial assistance schemes unveiled by the UK government.
Sound Energy shares were 9.1% lower at 1.05 pence each in London on Thursday afternoon.
By Eric Cunha; ericcunha@alliancenews.com
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Sound Energy (SOU)