Scottish oil company Bowleven said it remains in a strong position despite recording a $132million loss in the second half of 2015.
The explorer, which is focused on African opportunities, saw its loss increase from the $81million it reported a year earlier.
However, Edinburgh-based Bowleven said it retained $108million in cash, no debt and no work obligations.
Bowleven said a $133.5million impairment was made due to the “prolonged market downturn” and because it revised its oil price assumption to $65 per barrel compared with a market price currently hovering around $40 per barrel.
The company said its key objectives for the next 12 months included working with the Etinde joint venture partners in Cameroon to enable earliest appraisal drilling and testing, together with the evaluation of additional off-take solutions and the progression of Etinde development planning.
It also aims to progress its Bonomo gas acreage in Cameroon while looking to augment its existing asset base.
Bowleven will secure a further $15million before September 2016 under the terms of the farm-out on the Etinde permit. It will also receive $25million once a final investment decision is made for Etinde.
Chief executive Kevin Hart, said: “We have continued to make steady progress towards our objective of converting resources to reserves in Cameroon.
“Bowleven is covered for its share of drilling/testing on the two wells via the $40 million net carry from the Etinde farm-out transaction and will receive a further $15 million in cash in September 2016.
“As the downturn persists the number of potential opportunities is increasing. Whilst the evaluation of such opportunities is time-consuming, we continue to exert a rigorous screening approach when assessing potential value-creating transactions for shareholders whilst ensuring that our key differentiating feature of balance sheet strength is maintained.
“We are optimistic that portfolio enhancing transactions can be identified and delivered alongside the progression of our existing asset base and look forward to making further progress in the coming year.”