Circle reports widening full-year loss

Limerick-based exploration company Circle Oil today reported a pretax loss of $10.7 million in 2008, up from $2

Limerick-based exploration company Circle Oil today reported a pretax loss of $10.7 million in 2008, up from $2.7 million in the previous year.

The company which operates in Africa said pre-license costs relating to the Mahdia license amounted to $3.5 million.

It also had a foreign exchange loss of $8.9 million because of the fall in the value oif the pound against the dollar.

Cash and cash equivalent at the end of 2008 stood at $32.7 million.

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Chairman Thomas Anderson said during the year the company had switched from being just an explorer to also a producer.

In September last year the company raised $58 million in a share placing with principal participants Libya Oil Holdings and Iceland’s Kaupthing Bank.

The company recorded no revenues and will not pay a dividend. The basic and diluted loss per share was 4.60 cent, up from 1.68 cent a year ago.