Financial Performance - The Group reported a consolidated net loss after tax of HK$257.22 million for the year ended 31 December 2018, primarily due to mark-to-market write downs of investments and provisions for receivables [24]. - The Group incurred a consolidated net loss after tax of HK$257.22 million for the year ended 31 December 2018 [41]. - The net loss was primarily due to net fair value loss on investments, impairment losses on a promissory note and receivables, and net foreign exchange loss [42]. - The Group's revenue for the year ended 31 December 2018 was approximately HK$297.99 million, representing an increase of approximately 3.63% compared to HK$287.56 million for the corresponding period in 2017 [113]. - Revenue from commodities trading for the year ended 31 December 2018 was approximately HK$265.03 million, an increase of approximately 8.58% compared to HK$244.09 million in 2017 [113]. - Revenue from the sale of oil products for the year ended 31 December 2018 was approximately HK$32.96 million, a decrease of approximately 24.18% compared to HK$43.47 million in 2017 [113]. - The Group reported a gross profit of approximately HK$11.13 million for 2018, up from HK$6.91 million in 2017, mainly due to the oil exploration and production business [113]. - The Group recorded a loss of approximately HK$257.22 million for the year ended 31 December 2018, compared to a profit of approximately HK$101.70 million in 2017 [121]. - Basic loss per share for the year ended 31 December 2018, was approximately HK2.91 cents, while it was basic earnings per share of approximately HK1.26 cents for the corresponding period in 2017 [121]. Financial Position - Total assets decreased to HK$3,480.09 million in 2018 from HK$3,783.65 million in 2017, reflecting a decline of approximately 8% [24]. - The Group's total equity also fell to HK$3,129.98 million in 2018, down from HK$3,467.32 million in 2017, indicating a decrease of about 9.7% [24]. - The Group's net current assets amounted to approximately HK$907.82 million, a decrease from HK$1,217.66 million as of December 31, 2017 [138]. - The Group had cash and cash equivalents of approximately HK$928.48 million as of December 31, 2018, compared to HK$843.95 million as of December 31, 2017 [138]. - The Group's total borrowings were approximately HK$210.79 million as of December 31, 2018, slightly down from HK$213.78 million as of December 31, 2017 [138]. - The debt ratio was approximately 10.06% as of December 31, 2018, compared to 8.36% as of December 31, 2017 [138]. - The Group's gearing ratio was approximately 6.73%, an increase from 6.17% as of December 31, 2017 [149]. - The net asset value per share was approximately HK$0.36 as of December 31, 2018, compared to HK$0.39 as of December 31, 2017 [138]. Exploration and Production Activities - The Group has a diverse exploration business across regions including Bolivia, Argentina, Paraguay, and the United States [3]. - The Group drilled the exploratory well HLG.St.LB.x-2001 in the Chirete Concession, reaching a target depth of 2,705 meters and encountering significant oil and gas shows [48]. - The HLG.St.LB.x-2001 exploratory well achieved a production rate of approximately 2,295 barrels per day with virtually zero water content, indicating a successful drilling campaign [22]. - The Group is conducting extended well tests to evaluate the commercial viability of the HLG.St.LB.x-2001 exploratory well [51]. - The Chirete Concession is expected to provide potential positive financial value pending the final results from the extended well test [41]. - The Group plans to conduct exploratory drilling at Morillo Deep in the T&M Concessions in Q2 2020, pending necessary permits [110]. - The Morillo Deep Prospect has been identified approximately 17 km from the recent oil discovery site, with drilling targeted to commence in Q2 2020 [65]. - The Group holds a 69.25% participating interest in the Tartagal Oriental and Morillo Concessions, covering a total surface area of 10,583 km² with estimated Net Prospective Resources of 130.0 MMBOE [65]. Market and Economic Conditions - Argentina experienced an annual inflation rate of 47.6% in 2018, the highest since 1991, which contributed to increased operating costs [47]. - The Argentine Peso devalued by approximately 100% against the US Dollar in 2018, with inflation reaching 47.6%, the highest since 1991 [110]. - The Group is closely monitoring political developments in Argentina to assess potential economic impacts on commerce [110]. Governance and Compliance - The Board does not recommend the payment of any final dividend for the year ended 31 December 2018, consistent with the previous year [200]. - There were no material breaches or non-compliance with applicable laws and regulations during the year, indicating strong governance [199]. - The Group's financial risk management objectives and policies are detailed in the consolidated financial statements [198]. Strategic Initiatives - The Group is committed to maximizing shareholder value by exploring and developing oil and gas prospects in a responsible manner [32]. - The Group is well-funded to seek and capture suitable investment opportunities in the energy sector globally [33]. - The Group successfully engaged in commodities trading involving non-ferrous metals during the year, aligning with its strategic objective to diversify revenue sources [31]. - The Group plans to apply for a 3-year extension of its exploration permit until 13 September 2022 to complete the remaining exploratory wells commitment [70]. - The Group is considering strategic acquisitions to enhance its product offerings and market presence, with a budget of $100 million allocated for this purpose [176].