Clontarf told investors it had the funds, skills and contacts to deliver today as it posted the figures for the year to 31 December 2010.

The firm - focused in Ghana, Peru and Bolivia - relisted on AIM earlier this year following a reverse takeover of Persian Gold by Hydrocarbon Exploration -  an unlisted company.

Analyst Craig Howie, of Shore Capital, said: "Today’s results are the first material piece of news-flow from the company since its re-admission to AIM via a reverse takeover in April 2011, when Clontarf raised £2.7mln in a placing accompanying the deal.

"The numbers themselves are of little relevance, to our minds, as they pre-date the reverse takeover, and therefore do not cover the activities of the enlarged group."

Chairman John Teeling said today the firm's reorganisation had made it evaluate its projects - one result of this will be the likely disposal of projects in Iran and the Gulf of Mexico.

The firm reported a pre-tax loss of £2.2 million compared to a loss of £316,000 in 2009. The loss per share was 2.96 pence as opposed to 0.42 pence loss per share in 2009.

Net cash generated from financing activities stood at £20,425.

Running through the highlights, Clontarf said that, in Ghana, it awaited parliamentary approval on the 60 percent -owned 1,532 sq km Tano 2A oil exploration concession.

Late in 2010, it was awarded two prospective onshore blocks in Peru - the official signing of the licences expected later next month (July), it said.

Two wells are scheduled to be drilled in the second half of this year  on El Dorado  - a producing gas field in eastern Bolivia.

Meanwhile, negotiations are continuing to increase the firm's 30 percent stake in the Monteagudo gas field in central Bolivia to 50 percent and to gain operatorship.

Operating in Iran, where the firm has inherited mineral prospects, has become difficult. In the Gulf of Mexico, difficulties have also been encountered and the loss of value was sudden and unexpected, said the firm.

A subsidiary of Clontarf - Endeavour Oil and Gas - holds royalties on block 52 in the Gulf and a working 62 percent interest in block 30. Royalties are totally dependent on the price of natural gas.

Howie said : "In our opinion, the Tano 2A block on and offshore Ghana looks particularly exciting, given successive discoveries by Kosmos and Tullow in a country which is growing in importance as a major oil producer.

"Clontarf is awaiting formal ratification of the Tano 2A block although, in the meantime, the company has reprocessed and analysed over 760 line kilometres of 2D seismic data, revealing prospective areas, particularly in the offshore portion."

In onshore Peru, the firm was looking forward to the formal award of two blocks close to existing discoveries and infrastructure - with reinterpretation of seismic and well data underway, he said.

"A farmout or joint venture deal looks likely in Peru in due course.

The analyst added: "The commentary in today’s results is very much in line with our expectations, and we think that final ratification/award of Clontarf’s blocks in Ghana and Peru would be viewed by the market very positively.

"In the meantime, we believe that Clontarf has already made good progress with data interpretation work in both locations. The management team’s past success with the disposal in 2010 of Pan Andean Resources to Petrominerales provides added encouragement, to our minds."

Jason Robertson, of broker Optiva Securities, was also upbeat about Clontarf Energy.

"We believe the stock offers tremendous value for an oil and gas company given its range of assets/projects and market cap of only £9 million," he said.

Persian Gold, which is set to become Clontarf Energy, is set to acquire the unlisted Hydrocarbon Exploration (HyEx), which has oil and gas operations in the Gulf of Mexico and Bolivia as well as a potential share in a Ghanaian oil exploration block and early exploration interests in Bolivian lithium exploration.

After experiencing delays with obtaining Discovery Certificates for the the Chah-e-Zard gold oxide deposit and the Dalli gold/copper porphyry deposit from the Iranian authorities, the company decided to diversify both its geographical and resource focus.

The HyEx acquisition was announced in June and was shortly followed by the declaration of force majeure on its Iranian joint ventures, though Persian pledged to continue working in the country.

Under the terms of the deal, Persian Gold has offered to acquire all the outstanding shares of HyEx through a share based deal worth approximately £4.3 million – with 2,500 new Persian shares being issued for every HyEx share held.

Post merger and prior to any funding, Clontarf Energy will be owned 54% by Persian Gold shareholders and 46% by HyEx shareholders respectively. Persian Gold has so far acquired a 5.6% stake in HyEx.

The company said that the strategy will become clearer to shareholders upon the receipt of the full set of documents.

The Ghanaian block is said to offer significant potential, while Bolivia has opportunities in gas and lithium, though Persian also noted the political uncertainty in the country, also stating that work was underway to clear up legal issues with the Gulf of Mexico properties.

At the same time, Persian has no plans to give up in Iran, where it it has put five years of work and millions of dollars in investments into its two projects. The company stated that both Chah-e-Zard and Dalli had potential and it would work with the authorities to obtain discovery certificates.

“One thing is sure, the future is going to be very different from the past.  New directions, new projects, new money and a new name will revitalise our company,” said Chairman of Persian Gold John Teeling.

Persian Gold initially raised the possibility of switching to oil and gas in September 2009.

The company's strategic plans now require approval by its shareholders, who will receive the details in the coming months, which will be followed by a special meeting.

Persian Gold has also published its financial results for H1 2010, pre-tax losses decreased from £161,000 to £143,000 after operating costs fell from £160,000 to £142,000. Losses per share dropped from 22 pence to 19 pence.

While saying that the geology of Iran was “very attractive,” Persian said that bureaucratic hurdles were hindering its progress. The company said its application to the Ministry of Mines for a discovery certificate on the Chah-e-Zard gold and silver discovery had not been acted upon with no explanation given. Persian has completed all the technical work necessary for the lodging of a discovery certificate application for the Dalli copper/gold resource, but said there was no point in submitting it due to the current circumstances, also saying visas were no longer available for its staff, which was also left unexplained.

“For the past eighteen months, we persevered in our chosen strategy in Iran, though unable to make any progress with the authorities. We kept our top quality geological team together, we continued to examine new projects, and we pushed for answers to our application. It is unsatisfactory to report that we have made no progress and have received no explanations,” said Chairman John Teeling.

“If we can identify the problems, we will fix them,” he added.

The company said it was now looking into the mineral potential of neighbouring countries that would be suitable for its Iranian staff, including Armenia, Azerbaijan, Kazakhstan and Tajikistan, while pledging to continue monitoring opportunities in Iran. Persian intends to switch to oil and gas projects it has been offered outside of Iran in the event that its progress in the country gets stalled.

Meanwhile, the company, which has no revenue, has been able to cut its operating costs to £160,000 from £191,000 a year ago after its top managers accepted pay cuts and some of the staff were laid off. Loss per share reduced to 22 pence from 30 pence in H1 2008.

The Cha-a-Zard deposit is estimated to contain at least 160,000 ounces of gold and one million ounces of silver. Persian Gold said it believed the project was commercial.

The Ireland-based gold explorer said it is considering projects other than gold or copper/gold for the expansion. It has identified several projects with significant potential, and it will require partners to explore these.

Persian Gold is currently awaiting the issue of a discovery certificate on the Cheh-e-Zard gold deposit in central Iran prior to undertaking a full feasibility study. A scoping study shows healthy returns on developing the oxide deposit of 160,000 ounces of gold and 1 million ounces of silver, it said.

It is also finalising an application for a discovery certificate on the Dalli copper/gold deposit in the country. A simple conceptual study suggests that a small mine may be viable, it added.  

At the Chah-e-Zard gold and silver project, the company is awaiting the issue of a Discovery Certificate prior to undertaking a mine feasibility study. At the Dalli gold and copper-gold project it is finalising a Discovery Certificate application on the copper / gold part of the orebody.

In a results statement for the full year to December 31 2008, chairman John Teeling said: ”We have a first mover advantage, being the only European mining company active in Iran. We see a significant flow of new gold projects in Iran and in adjacent countries.”

The group narrowed its pretax loss to £310.400 from £378,400 a year earlier mainly as a result of lower administrative expenses.

Chah-e-Zard is a gold-silver deposit near Yazd in central Iran and Dalli is a copper-gold project about 200 kilometres south of Tehran.

At Chah-e-Zard, the company is awaiting a Discovery Certificate giving it the right to exploit 160,000 ounces of gold and 1 million plus ounces of silver in near-surface oxide ore. A scoping study indicates that a US$4 million capital expenditure will enable mining 15,000 ounces of gold a year at a grade of 1 gram a tonne with an 80 percent recovery.

Once Persian Gold obtains the necessary permits, it should take 9 months to construct. Persian Gold will own 70 percent of the project with a local partner holding the remaining 30 percent.

Drilling and geophysics research at Dalli led to the conclusion that there are two separate orebodies on the licence, about 1.7 kilometres apart. The South Hill is copper / gold while the North Hill is gold.
A conceptual study of Dalli suggests that a US$20 million investment could produce up to 50,000 tonnes of copper. Persian Gold is completing the work necessary to apply for a Discovery Certificate.

The Ireland-based Iranian gold and copper explorer said a detailed 3D model of the deposit will be completed in Q1 2009, which will include an estimate of potential tonnage.

Samples from the eight trenches of a total length of 1,220 metres included 176 metres at 0.91 grams per tonne of gold and 0.34 percent grading of copper as well as 188 metres at 1.01 g/t of gold and 0.33 percent copper.  The gold and copper concentrations in the trenches show a very good correlation at depth with the borehole results.

The Dalli property lies 200 kilometres southwest of Tehran and is a gold/copper porphyry with extensive surface mineralisation and two distinct centres located 1.7km apart. Dalli is a joint venture between Persian Gold and Dorsa, a local Iranian company, held 70 and 30 percent, respectively.

TO LISTEN TO AN AUDIO INTERVIEW WITH JOHN TEELING RECORDED TODAY, CLICK HERE

Persian Gold is focusing on two targets approximately 1.7 kilometres apart, the ‘South Hill’ has been the focus of the most recent drilling, with three drill holes recording ‘varying levels’ of porphyry style sulphide mineralisation.

Highlights included 56 metres grading 0.37% copper and 0.52 grams per tonne gold from 57 metres, followed by a further 66 metres grading 0.31% copper and 0.39 grams per tonne gold from 196 metres, 11 metres grading 0.71% copper and 0.83 grams per tonne gold from 307 metres, and finally 24 metres grading 0.49% copper and 0.24 grams per tonne gold from 334 metres - all from drill hole DDH 06 which returned the most promising data.
                                             
“These results reinforce the belief that Dalli could be a very large system,” the company stated.
Persian Gold has also completed a 50x50 metre topographic map over both North and South Hills, a geological map over 81 hectares on the North Hill and 100 hectares on the South Hill which will assist in the completion of a 3D model of the deposit which is expected to be completed ‘within three months’.  Persian has also completed 16 trenches over 1,513 metres and collected 819 samples – assays are pending.

John Teeling, Chairman of Persian Gold commented;

'Once again, we have shown that we can operate in Iran to the highest standards. Second phase drilling at Dalli was encouraging. With the exception of drill hole 5 which was barren, the results were highly positive, in particular drill hole 7 with 220 metres of 0.42% copper and 0.50g/t gold. At current metal prices, this equates to a value of $35 per tonne of rock in the ground.

These results confirmed the need to complement our drilling with further ground surveys and trench samples. All of the data will be inputted to a 3D model from which we can make a first estimate of potential tonnage.'

Persian Gold reported a loss per share of 30 pence, slightly wider than the same period last year, and ended the period with £0.278 million of cash and cash equivalents in the bank.

Persian Gold, as the name suggests, is exploring for gold and copper in Iran, and as such has no revenues at this time. The company’s Chairman, John Teeling reiterated the vast potential of Iran for mineral exploration, but also conceded that having interests in Iran has had an adverse effect on its share price.

Persian is focused on the Tethyan Belt, a geological structure that runs through Turkey, Iran and Pakistan, and hosts many world class mines – particularly copper-gold porphyry deposits – which are highly desired for their large tonnage, low grade nature.  Barrick Gold (NYSE: ABX) and Antofagasta (LSE: ANTO) are jointly developing the world’s largest copper-gold porphyry, Reko Diq, on the Iran/Pakistan border.

Persian’s own focus is on the Dalli Project, some 200 kilometres south-west of Tehran.  Assays from additional drilling on the ‘South Hill’ of the project are still pending, but the company said that visual inspection of the core suggested the grade of the copper and gold ‘could be quite variable’.

Meanwhile, at the Chah-e-Zard gold prospect, the company, in conjunction with its local partner, is awaiting a discovery certificate before commencing a pre-feasibility study.  The southern lobe of the project is believed to hold around 160,000 ounces of gold and 1 million ounces of silver and could support a small mining operation.  There is additional potential for further resources at depth along strike.

Beyond Chah-e-Zard and Dalli, Persian said it was reviewing its other projects, in light of the limited availability of finance.   The company also confirmed it was looking at project in other countries, including Azerbaijan and Kazakhstan.

Finally, looking ahead, John Teeling confirmed that Persian Gold was looking to move ahead with at least one of its current projects as well as adding new ones, and the company was looking at ways to finance its projects.