Clontarf Energy sees pre-tax losses widen to £3.2 million

Clontarf Energy saw pre-tax losses widen last year as the exploration company, which is involved in a dispute over a licence award in Ghana, was hit by impairment charges and higher administrative costs.

The company, which has operations in Ghana and Peru, said losses rose to £3.2 million for the year to the end of December, up for £1.3 million the previous year.

Impairment on its evaluation and exploration assets increased to £2.5 million during the year, while administrative expenses rose to £667,370.

Chairman John Teeling said the company was facing a difficult period after as its Bolivian interests were written down to zero value, its Peruvian blocks proved difficult to farm out, and one of its Ghanaian sites remains the subject of legal action.

In March, the Ghanaian government awarded to a licence to US firm which Clontarf maintains overlaps with its own block, prompting the company to seek a court injunction.

“This is not ideal and something we avoided for four years. But the die is now cast and we will be resolute. It is always better to talk than to litigate so we actively seek to engage with the various parties. Some discussions have taken place in this regard,” he said.