/ 25 March 1999

OIL SLUMP HITS ENERGY AFRICA

CONTINUING low oil prices are decreasing Energy Africa’s exploration and production activity. The company reported on Thursday an operating loss of R74-million for the latest six-month period. The loss comes after a R27,1-million loss in the comparative 1998 period, as a result of a 36% lower realised oil price. MD John Bentley said that due to the prolonged period of depressed oil prices, cash flow from operations has been affected throughout the industry and the company considered it prudent to take a significant exceptional provision to reduce the carrying value of assets on its balance sheet.