Chariot Oil & Gas pre-tax loss widens on the back of impairment charge

Larger impairment against its assets in Namibia saw oil explorer Chariot Oil & Gas post a wider annual pre-tax loss.

The group said its pre-tax loss jumped almost 300% to $41.8m (£28.3m), following a $33.6m impairment charge against the Namibian northern blocks.

However, the group added that it remained confident to fulfil its commitments, thanks to a strong cash balance, which amounted to $53.5m at the end of the year.

The oil explorer said it expected to spend $26m in 2015, mainly on 3D seismic acquisition and processing, adding it was pursuing further expansion opportunities.

“Current market conditions in the oil and gas industry are challenging, and we will look to manage those that affect our business accordingly,” said group chief executive Larry Bottomley.

“We also see this as a time of real opportunity for well-funded and well positioned companies such as Chariot."

Analysts at Westhouse Research said the company had “an interesting portfolio of prospective acreage” but warned that material increases in net asset value were “contingent on securing farm-in partners”.

The brokerage reiterated its ‘neutral’ rating on the stock with a target price of 9p.

Chariot Oil and Gas shares were up 6.95% to 8.77p at 10:04 on Friday.