Clyde in red after failed exploration

WEAKER oil prices and the cost of an unsuccessful exploration have pushed Clyde Petroleum, the oil and gas independent, into a pounds 5.5m net loss in the first half to 30 June, writes Neil Thapar.

The result stemmed partly from a pounds 7.9m write-off against unsuccessful drilling in Vietnam. Under a new and conservative accounting policy adopted by the company the cost of the exploration was written off against its profits.

The interim dividend is being passed. The loss per share amounted to 1.7p against 2p earnings last year.

Total cash inflow from operations fell by 15 per cent to about pounds 27m due to weaker oil and gas prices. But daily production rose by 11 per cent to 26,170 million barrels of oil equivalent.

Clyde says it is considering a 'fast-track' development for the Gryphon gas field in the Dutch sector which will be economic at an oil price of pounds 10 a barrel.

The company's debts as a proportion of net assets rose from 42.2 per cent at the end of last year to almost 45 per cent.