- Baron Oil reported wider annual losses on asset write downs after drilling the Wick Prospect was unsuccessful and caused costs to overrun.

For the year ended 31 December 2018, pre-tax losses widened to £3.28m from £2.058m a year earlier.

Exploration and evaluation expenditure written off totalled £1.526m, arising from expenditure amounting to £1.312m on unsuccessful exploration in Wick prospect, £0.164m expenditure in Peru on Block XXI, and £39,000 in costs regarding the South East Asia Joint Study Agreement with SundaGas, the company said.

At the end of the financial year, free cash reserves of the group had decreased to £1.709m from a level at the preceding year end of £3,873m, the company added.

'This has been an eventful time for the Company, with participation in two wells after a long period with little activity. It is unfortunate that the Wick Prospect was unsuccessful but the Colter well and its sidetrack provided encouragement that there is an oil accumulation with commercial potential in Licence P1918 as well as upgrading the potential of our adjacent onshore licenses,' said Malcolm Butler, Executive Chairman.

' The team is working hard to get further drilling activity in 2019 by bringing in a partner to Peru Block XXI. We continue to look to SE Asia as an area for growth and I hope we will be able to bring to fruition the existing application with SundaGas.'

At 10:00am: [LON:BOIL] Baron Oil share price was -0.01p at 0.13p

Story provided by