Petro Matad posts wider net loss, shares slide

21st Jun 2011 08:54

Mongolian oil explorer Petro Matad reported a wider full-year net loss due to soaring exploration expenses, sending its shares tumbling more than 4%. For the year ended 31 December, the company posted a net loss of $16.1m (£9.95m), compared with a net loss of $5.1m, a year earlier. Overall expenses tripled with exploration and evaluation costs amounting to $9.6m, up from $1.5m, last year.Employee benefits expense rose to $4.1m as the company increased its headcount to 80 from 26 for in-house exploration and engineering expertise. In addition to the results, Petro Matad announced that it will continue an aggressive programme of drilling, completion and testing of the Davsan Tolgoi on Block XX and said that it aims to evaluate opportunities in the petroleum sector in Mongolia. Furthermore, the company is in negotiations to import a drilling rig, staffed by personnel with year-round operational experience, which will dramatically increase the rate of drilling wells. "This all reflects the company's intended shift from being a grass roots explorer to an exploration and production company," it said in a statement. Shares of AIM-listed company were down 4.1% at 130p in morning trade.AR