By Alex MacDonald

LONDON--Atlantic-focused oil and gas explorer Chariot Oil & Gas Ltd.(CHAR.LN) Wednesday reported a wider net loss for the first half of the year after incurring an impairment related to the disposal of its Mauritania exploration license.

The U.K.-listed firm incurred a loss of $5.4 million for the six months ended June 30, compared with a $4.4 million loss in the same period a year earlier, primarily due to the relinquishment of its C-19 licence in Mauritania, resulting in a $5.2 million impairment.

This was partly offset by a reduction in other administrative expenses and an unrealised foreign exchange gain from the strengthening of the Brazilian real on cash held as security against licence work commitments.

Looking ahead, the company said it has four drill-ready prospects and plans to drill three wells in the next two years with its partners.

The first of those wells is likely to be the RD-1 well at the Rabat Deep prospect in Morocco, which is currently 50% owned and operated by Chariot Oil although operatorship is currently being transferred to Italy's Eni SpA (E).

The company is also seeking to secure partners to drill its recently acquired Mohammedia permits in Morocco, and to drill the southern blocks in Namibia.

The company said it had a strong balance sheet of $29 million in cash at the end of June and no debt. It noted that its cash pile exceeds its license commitments.

Write to Alex MacDonald at alex.macdonald@wsj.com

(END) Dow Jones Newswires

September 14, 2016 02:39 ET (06:39 GMT)

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