Spitfire losses widen on Australian lignite project

Australia

Spitfire Oil posted a pretax loss of A$460,000 in the final six months of 2015, more than double what it reported in 2014.

A A$261,000 impairment charge on its Salmon Gums lignite project in Western Australia was a significant contributor to the overall loss, which is worse than the A$183,000 it reported for the same period in 2014.

Chairman Mladen Ninkov commented, “Following the disastrous 2014 year for oil and gas prices, the trend tragically continued in 2015 with even further catastrophic falls in prices.

“With the junior oil and gas equity markets effectively on life support and the projects available for acquisition economically unviable and the carrying costs unsustainable, the Company has had little option but to preserve its cash holdings and look for projects in extractive industries which may have a long term future in a fast changing world.

“Nothing examined to date has yet fulfilled these requirements or currently remains incapable of being acquired, but the company remains hopeful that such an asset may be able to be obtained in the future.

“The challenge remains Himalayan in its proportion.”

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