Clontarf Energy writes off Iran and Mexico projects
Irish oil and gas company, Clontarf Energy has written off its legacy projects in Iran and the Gulf of Mexico so it can focus on developing its assets in Ghana, Peru and Bolivia.
In its statement this morning detailing financial results for 2010, the company said the gold venture in Iran had “proven problematic”, while royalties from the Gulf of Mexico have stopped because of the current low gas price and issue with local partners.
The firm will now focus its business plan on its 60pc interest in the Tano 2A oil exploration in Ghana.
In Peru, the official signing of licences on the onshore blocks 183 and 188 will take place in late July ahead of the change in government and in Bolivia, Clontarf are in negotiations to increase their stake in the Monteagudo gas field from 30pc to 50pc.
Explaining the move, chairman John Teeling said, “The reorganisation of Persian Gold into Clontarf Energy provided an opportunity to critically evaluate our projects. Difficulties with projects in Iran and in the Gulf of Mexico has led the board to write off their value. Both are likely to be disposed of in due course.”
Commenting on Bolivia, he said the company expects production revenue and exploration potential.
Clontarf did exceptionally well to obtain two good blocks in the 2010 Peruvian licence round, he added.
The firm recorded a loss of Ł2.2m for 2010, up significantly from the Ł315,118 loss seen the year previous. The loss per share increased to 2.96p from 0.42p.
Shares are currently trading at 4.50p, down 0.4p from last night’s closing price.