This information was disclosed in the company’s annual financial report released this week. The company said the loss is ‘in respect of exploration and evaluation expenditure in The Gambia’.
The Gambia in January 2014 terminated exploration, development and production licences for three oil firms, including African Petroleum, for failing to meet their licence contractual obligations.
This decision was however reversed last year when the government reinstated the company’s Alhamdulilah Licence Block A1 and Licence Block A4.
“However, the company has not reversed the impairment loss previously recognised for these licences…,” the oil company declared.
The report added: “The reinstatement of the Gambian Licences is a significant and positive step for the Company, particularly following the recent oil discoveries made by Cairn Energy in Senegal.
“Upon reinstatement, African Petroleum agreed to a revised initial exploration period that will expire on 1 September 2016, in return for a commitment to drill an exploration well on one of the Gambian Licences and reprocess 3D seismic on Licence Block A4 prior to 1 September 2016.”
African Petroleum Corporation Limited is an independent oil and gas exploration company operating ten licences in five countries offshore West Africa, including neighbouring Senegal.
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