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Annual Results

Karoo losses widen

02 October 2017 14:03

Karoo Energy has reported a loss after taxation of £381,914 for the year ended 30 April 2017, which compares to a loss of £357,691 for 2016.

Year-end cash was £nil (2016: £294,546).

The Group raised £214,068 net of expenses during the year through the issue of 7.7m shares for the advancement of its Botswanan licences and ongoing administrative expenses.

The Company said it is continuing to focus on progressing the licence work programmes in Botswana in the most effective manner, utilising new technologies and the opportunities that the current low-cost exploration environment bring.

At the same time, the Company is continuing to minimise the ongoing overhead and administrative cost burden to the extent that this does not impact adversely on operations.

The directors do not recommend payment of a dividend.

In terms of outlook, Karoo said:

"The challenges facing Karoo Energy include the size and scope of the licence areas and the limited time available to complete the work programs coupled with the requirement to raise sufficient finance to undertake the work. Furthermore, we will be making announcements regarding the renewal process for shale gas licence PL001-2012 in due course. The licence expired in December 2015 and due to the length of time taken to renew the licence and the uncertainty over this, the Board decided to impair the associated exploration costs in full.

"Ongoing funding of the work programmes continue to present a challenge that the Board is working on by both strengthening the management team and dual listing the Company on the Botswana Stock exchange alongside its application to trade its shares on AIM. Both of these moves will open up further sources of funding to the Company and help the Company complete its work programs on time and in full.

I am pleased with the development of the Group since my last report to shareholders and believe we are making steady progress with our exploration program on our portfolio of licenses in Botswana. We look forward to providing investors with detail on further progress over the coming weeks."

At 2:03pm:

Story provided by StockMarketWire.com

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