PKN Orlen, an integrated oil company with headquarters in Poland, has taken a writedown of $110m on its Canadian assets as its petroleum reserves have grown less in value due to the plunging oil prices.
The firm acquired Calgary-based TriOil Resources in September 2013 for $240m including debt and in May 2014, it acquired Birchill Exploration, another Canadian firm, reported Calgary Herald.
In the financial results for the last three months of 2014, the company reported: "An impairment allowance of assets recognized in the IV quarter of 2014 in accordance with IAS 36 – impairment of assets amounted to PLN 331 million (Polish zloty) and related mainly to assets of the Orlen Upstream Group in Canada.
"As at 31 December 2014 the fair value of evaluation and extraction of mineral resources assets in Canada was based on the estimated crude oil prices and reserves evaluation prepared by an independent company engaged in the evaluation of the reserves in accordance with professional standards for the Canadian market."
Earlier the company had aimed to grow production to 20,000 boe/d by 2019, the publication reported.
The Polish government owns 27.5% stake in Orlen.
