Petrel Resources PLC on Tuesday posted another annual loss for 2022, while noting ‘a shortage of institutional investor finance in London for several years now’, and expressed concern for its future.
Petrel Resources shares fell 32% to 1.02 pence each in London on Tuesday morning.
The hydrocarbon explorer with interests in Iraq and Ghana said its pretax loss in 2022 narrowed to €310,833 from €322,077 a year prior. The company does not generate revenue yet, relying on raising capital from the public market.
Petrel Resources said that Europe is de-industrialising ‘due to policies hostile to reliable fuels’. It added that current conditions ‘represent a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern’.
Looking ahead, the company said Europe is now less than 15% of global energy consumption, with Brics+ states having a larger gross domestic product than the G7. Brics stands for Brazil, Russia, India, China and South Africa.
‘The future is in the emerging economies. Australian brokers and investors have profited through the liquidity of Petrel’s sister company, Clontarf Energy PLC. They are pressing Petrel Resources to open its books for greater Australian and Asian participation,’ Petrel added.
‘So far, the board has been keen to avoid dilution, but as we roll out high-potential new projects, it may be worthwhile to accept funding - hopefully at much higher share prices.’
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