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Independent Resources Plc (LSE:IRG) shares dropped 8.4% by 2:15pm GMT on Wednesday following the release of their results for the fiscal year ending 30 September 2011.
The news release contained highlights from the year, a short statement by the company chairman, and a series of consolidated financial statements.
In the announcement, the chairman admitted that progress was slower this year than they had hoped, however he outlined several positives about the previous year.
Responding to the results, the Executive Chairman Grayson Nash stated:
“Given the status of our three main projects, we believe the time is right to start exploring value-adding options for separating our valuable but relatively riskier E&P interests from our more strategic gas storage assets. This will enable the company to focus its resources primarily on Rivara as we execute our plans to realise maximum value from this major asset. I look forward to providing further updates over the next few months.”
Rivara
As indicated by the statement, Independent Resources is looking to focus its resources more wholly on its Rivara project. Though the project has been marred by permitting challenges and other complexities, progress continues slowly for the company. Through third party econometric studies, they have determined that the project will be a positive impact on the surrounding Italian community, providing long term employment, added value, and fiscal benefits to the region.
The chairman reassured shareholders that he and his “local industrial partners continue to do everything [they] can to reassure these communities, by demonstrating how unobtrusive the surface facilities of the gas storage facility will be, and the comprehensive measures that will be put in place to ensure it is safe, clean and has minimal environmental impact.”
Ribolla Basin
According to the statement, Independent Resources is seeking a partner with expertise in unconventional gas before continuing exploration and development of this site.
The statement claimed that a restructuring of the business is likely, reflecting the division between the gas storage and exploration & production industries. The chairman stated that, “having successfully established the commerciality of the Ribolla reserves, the board now believes that separating these two areas of activity will deliver greater value in the current market conditions than maintaining our existing integrated business model.”
Ksar Hadada
Independent Resources holds an 18.97% interest in a joint venture with PetroAsian Energy Ltd in Tunisia. Though drilling operations were unsuccessful last year, a new permit has been granted for the current year and the company still sees it as an attractive opportunity, according to the statement.
Chairman’s Statement
In conclusion, the chairman stated:
“In summary, the board remains absolutely committed to its vision for the company. We are confident that we have the assets and the resources to achieve our ambitious objectives, and we continue to be highly motivated through our own holdings of equity. I look forward to reporting on many more positive developments throughout the year ahead.”
The company reported a loss for the year of £1.16 million with no revenues, a substantial reduction in losses from the previous year, which totalled £2.2 million.
