Desire Petroleum PLC swung to full-year pretax loss due to the strengthening of the pound against the dollar reported the company.
The oil and gas exploration company focused on the Falkland Islands swung to a full-year pretax loss of 2.5 million pounds from a profit of 2.1 million a year earlier. Desire, which currently has no revenues said most of its funds are held in dollars to match expected spending on its exploration programme. The losses followed the strengthening of the pound against the US dollar since the last year-end, "and reversed out the corresponding exchange gain made in 2005". The company said it continues its efforts to acquire a partner in North Falkland Basin but added that its efforts to secure a rig for exploration drilling are being hampered by a worldwide shortage caused by high oil prices driving a general industry focus on drilling for production rather than exploration.