Oil and gas exploration and development company Baron Oil PLC (LON: BOIL) saw its share price dip on a disappointing set of fundamentals for the first half of full-year 19.
The Company made a net loss after finance costs and tax of £307,000, narrowing in comparison to a net loss of £405,000 for the same period of FY18. This represented a loss of 0.02p per share, narrowing from 0.03p on-year and 0.181p at December 31 2018.
Baron Oil also announced that the costs of the Colter and Wick wells were a net £2.4 million, ‘significantly higher’ than originally projected. Further, the Company’s cash balance has declined consistently; declining from £3.2 million, to £1,7 million, to £0.6 million, for each six month period ended 30 June 2019.
The Group said a review was underway on its Colter South and Purbeck Prospect projects, and that it had been awarded ‘significant’ new exploration blocks in Inner Moray Firth. It added that it was exploring funding options in Peru and was looking into ‘potential developments’ in South East Asia.
Baron Oil comments
Malcolm Butler, Executive Chairman, added the following to their first half insights,
“Following our modest drilling success during the period, we have made significant, high potential additions to the Company’s UK exploration portfolio. Despite our capital constraints, we have also been looking at ways of getting involved in other international opportunities, targeting larger interests in assets that combine high potential impact with relatively low risks and costs. Your Board continues to seek to give shareholders access to near-term drilling with the potential to produce substantial returns.”
The Company’s shares had dipped over 14% to circa 0.60p at around 06/09/19 12:30 BST a share, before being suspended. They previously closed at 0.70p a share.
Elsewhere in the oil and gas sector, there have been updates from; Cabot Energy PLC (LON: CAB), Reabold Resources PLC (LON: RBD), Eco Atlantic Oil and Gas Ltd (AIM: EOG), Valeura Energy Inc.(LON: VLU), President Energy PLC (LON: PPC) and Mosman Oil and Gas Limited (AIM: MSMN).