Drillsearch Likely to Include $46-$53M Non-Cash Impairments for E&E Assets

Australia's Drillsearch Energy Limited provided Wednesday an update on the company’s bi-annual assessment of carrying values, referred to in the Market Update released to the Australian Securities Exchange (ASX) on Jan. 21.

Drillsearch advises that it expects its Half-Year Results to include non-cash impairments in the range of $46.1 million (AUD 65 million) to $53.2 million (AUD 75 million) (on a pre-tax basis) relating to the value of its longer-dated oil and gas exploration and evaluation (E&E) assets as at Dec. 31, 2015.

The anticipated impairments are accounting adjustments relating to historical book values in the context of the decline in the oil price since June 30, 2015 and weakening market sentiment.

As stated in the Market Update on Jan. 21, Drillsearch does not anticipate any impairments to the value of its producing oil and gas assets.

These impairment outcomes are subject to the finalization of Drillsearch’s Half-Year Results and financial report, which are expected to be released on Wednesday Feb. 24.