Spitfire To Be Inactive Until October 2015 Without Venture Partner
Spitfire Oil Ltd Wednesday said its pretax loss for the financial year widened due to an impairment charge of its only project, which will remain suspended until October 2015 due to weak oil prices and the inability to develop the project at a low capital cost.
The company does not generate any revenue and reported a pretax loss of AUD4.5 million for the year ended June 30, significantly wider than the AUD289,639 loss made in 2013. The wider loss was caused by a AUD4.2 million impairment of its Salmon Gums tenements in western Australia.
The Salmon Gums lignite project remains on hold and the retention licence has been renewed for a further year until October 2015 as the company continues to pursue a joint venture partner to develop the project, it said.
"Active exploration work now suspended and having considered market prices for fuel products, the directors are of the opinion that provision be made against the carrying value of the Salmon Gums mineral tenements," it said in a statement.
The company has tried to keep its running costs to a minimum while reviewing possible new projects. A number have been considered during the year but have so far not met requirements, said Spitfire.
"The Salmon Gums project continues to be the major asset of the company, hamstrung by the low oil price and the absence of a low capital cost method of extracting distillate from the massive lignite resource at Salmon Gums," said Chairman Mladen Ninkov.
"The company continues to preserve its cash holdings by keeping its overheads to the barest minimum, having no full time employees and relying on the goodwill of the directors to manage, undertake all project reviews and acquisition due diligence," he added.
At the end of June, the company had a cash balance of AUD5.0 million
Just a thought but after being turned down have they turned their attention to SRO. 3 years to complete due diligence, possibly make an increased offer?
"ASX-listed energy company Blackham Resources reports that it has turned down an unsolicited cash offer of $15-million for its 70% interest in the Scaddan Energy coal-to-liquids (CTL) joint venture (JV), in Western Australia (WA)."
Something brewing here. Try buying even a small amount. Straight to NT. Orders to fill. Can sell full holding in one go but can't buy with pocket money.
Average down if you can...Good Luck Options expire 17 days time at almost double SP.
Check the wording in the last report
"As always, the Company continues to evaluate these opportunities with its first and foremost goal to obtain an exceptional return for shareholders. It is with that, and only that, aim that the Company enters the new financial year"
4 Years is a long time. So could Gold be back on the agenda?
"Chairman, Mr Mladen Ninkov, commented "The recently completed gold exploration program has covered only 6 kilometres of the interpreted 35 kilometres length of the major Mt Ida and Cundeelee Fault Systems in Spitfire's Salmon Gums tenements. Since two significant gold anomalies have been defined within the area so far covered, there is obvious potential to discover more targets within the licences."
"In September 2009, Spitfire commissioned a gold exploration program into the granite basement of a geologically prospective area at the intersection of the two faults located on its tenements. The reconnaissance program consisted of a desktop study utilising in-house geological data of the area and a specially commissioned geophysical interpretation to define the target zone which was tested by 132 air-core holes drilled on a widespaced 800 x 200 metre grid for a total of 7,706 metres with an average hole depth of 58.4 metres. The results are encouraging with several areas of anomalous gold delineated, two of which occur along important regional structures identified by the desktop studies. The two structural anomalies contain values up to 23 parts per billion in an area in which bedrock chips indicate a metasediment sequence occurring between two areas of granite. Some anomalous values were also recorded in the surrounding granite, some of which is pyritic. Given the early stage of investigation these are encouraging results and further work is required to infill drill the anomalous zones and also to extend coverage over the remainder of the anomalous structures throughout the rest of the Spitfire exploration licences."
Sudden interest. Deal pending perhaps before options expire at end of the month. No free float and trading at massive discount to cash value.
Don't wait too long once the volume picks up this will move quickly.
This was posted on the Griffin board by a poster who had attended the Griffin agm yesterday and asked some questions about Griffins operations.
3) why has the BOD wasted time and money on Spitfire Oil? Why not get rid?
MN adament that SRO is not a waste - could sell it today at a profit. The technology for exploitation of lignite has been developed by a third party. There is new technology available that would allow exploitation at much lower capex. Previous studies show process to be viable at $100 per barrel oil price if by product is sold, $130 per barrel if by product not sold - market for this uncertain. Figures for the application of the new smaller scale technology are yet to be determined. This most likely to occur with JV. (new)
Hi Scotsman 1, I just managed to invest earlier this week before the sp started moving up.
..............................£3m market cap...................
..................£5M cash in the bank.................
...............................only 42M shares in issue..................
.......................Directors recently awarded themselves options..............
If Spitfire can get involved in a new oil and gas project the sp could move up very quickly in my opinion.
Other than waiting patiently I can see no downside.
I see 16 million shares were issued in 2007 @60p per share to raise £10m after costs, there are now 42 million shares issued, can anyone tell me when the other 26 million shares were issued and at what price ?.
cash covers the current share price so the lignite/maybe gold/exploration assets are thrown in.
Personally think sro have either found a jv partner or a bit of gold.
It looks like the 240k order at 9.5p moved the sp - just shows how illiquid this stock is - pmur chased the sp up.
Shares in ValiRx ( VAL:L ) have been catching investors attention
after releasing news of an over the counter Home Chlamydia Kit
soon to be available across the Uk and Europe.The company are
said to be seeking FDA approval for an American Rollout.
Maybe we are in luck and it's not a p&d, just look at what happened over on QFI the other day, several days of unjustified rises and then an RNS. Of course the MMs knew or they would not have allowed the rise in an illiquid stock and the same goes for here.
I thought when the Annual Report came a while ago that for a dormant company they had spent a lot of money on it, and again the sp should have been almost zero based on news. So I have always held on to the small number I have.
dont know but theres only around 20% shares free floating 8-9 million of the 42.5 million shares .so could be a P&D .
bhut i picked up one or two this morning just in case .. could be news coming on the salmon gums project and the price has been a little perkie the last few days .
not bought a lot tho as i dont fancy getting impailed
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