The Company has continued to focus on reducing its cost base to conserve cash resources.
Together with the acquisition and interpretation of the historic 3D seismic data in PEL 0094 and the extension of that licence, the other most significant event for the Company during 2020 was the recent equity share Placing concluded on the AIM market, subsequent to reporting date. On 16 September 2020, the Company announced
that it had successfully raised £1.4 million in aggregate before costs via the Placing of 177,000,000 Ordinary Shares.
Proceeds from the Placing and Subscription, excluding any arising from exercise of the Warrants, will provide in full the funds needed for the work commitments (firm and contingent) in PEL 0029 during the remaining period of the licence until December 2020, and in PEL 0094 for the forthcoming exploration period to September 2021.
As a pre-revenue company in the early stages of exploration in Namibia, the impact on our business operations related to COVID-19 and oil price weakness has fortunately been very limited.
During the year ended 30 June 2020, the Group recorded a loss after tax of US$1,526,449 (2019: US$1,734,589). Cash balances at 30 June 2020 amounted to US$932,818 (2019: US$2,786,791). The Group has no debt outside of suppliers who are settled on normal commercial terms.
The Company remains committed to offshore Namibia where its work commitments for PEL 0029 and PEL 0094 are fully funded as noted above. Work will continue in seeking a farm-out partner to fund future exploration drilling operations.