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Argos Resources reported a wider losses as costs increased and pandemic-led slowdown in activity in exploration activity weighed on growth.
For the six months to 30 June 2021, pre-tax losses widened to $200,000 from $192,000 year-on-year as administrative expenses jumped to $205,000 from $148,000.
'The industry is cautiously increasing activity in response to the recovery in oil prices in the first half of 2021, albeit still being hampered by operational and logistical difficulties caused by the continuing Covid-19 restrictions,' the company said.
'Acknowledging this slowdown in activity, the Company requested an extension to the term of Licence PL001, a production licence covering an area of approximately 1,126 square kilometres in the North Falkland Basin, as more time will be required to recover from this downturn,' it added.
Looking ahead, the company said it had sufficient cash resources to continue for the period of the current licence term, which expires on 1 May 2022.