A one-off $3.3 million write-off has seen listed exploration company Austral Pacific post a $2.93m before tax loss in its third quarter.
Austral Pacific yesterday filed its Q3 interim accounts.
Austral Pacific chief executive officer Thompson Jewell said the company sold 26,051 barrels of oil in the third quarter from its Cheal facility, generating $3.14m in net revenue.
“The accounting loss was largely driven by the write-off of two commercially unsuccessful wells. However, this result was an improvement on Austral’s 2007 third quarter performance.”
Mr Jewell said high oil prices had benefited Austral, with barrels selling for $114 on average.
Cash flow from operations was $1.37m compared with a loss in the previous quarter, which reflected Austral’s freedom from previous oil price hedges.
Austral was continuing to reduce costs, targeting general and administrative costs in particular, Mr Jewell said.
He added that Austral is working to a December 15 deadline to determine how it will refinance or restructure its Investec loan facility.
The company announced in September that a strategic alternatives review of its business had been initiated.
Mr Jewell said the review process is ongoing, and the company and its advisors are working closely with various interested parties, including Investec.
Further announcements on the process will be made only when the board of directors has approved a specific transaction or other course of action.