Petrel Resources losses deepen as it focuses on Iraq

Petrel Resources reported a significant deepening of its operating loss in its preliminary results on Monday, to €1.96m (£1.76m), from €0.24m a year earlier.

The AIM-traded firm, which remains pre-revenue, said its administrative expenses widened to €0.35m for the year ended 31 December, from €0.24m, while it posted an impairment of deferred development costs of €1.61m, compared to nil in 2018.

After negative exchange differences of €0.12m, swinging from a positive €0.1m in the prior year, Petrel’s total comprehensive loss for the year was €2.08m, compared to €0.14m in 2018.

Basic and diluted losses per share came in at 1.5 euro cents, widening from 0.27 cents year-on-year.

“The strategy is clear,” said chairman John Teeling of Petrel’s outlook.

“We focus on Iraq while pushing Ghana with our partners.

“We continue to engage with the group of investors who bought the block of shares in 2019.”

Teeling said the company welcomed “any and all” proposals from them.

“To date none of their proposals come with any title,” he said, describing them as “ideas and suggestions but of no substance.”

“We raised a limited amount of new money - £0.25m - in early 2020 to fund an expansion of our Iraqi involvement.

“This adds to the money invested in new shares by the French group in 2019, so we are well funded for current activities.”

At 0907 BST, shares in Petrel Resources were down 9.76% at 3.7p.