Calgary-based Africa explorer Artumas reported its second-quarter net loss has more than doubled to $13 million, as the cost of exploring and operating in remote Tanzania begin to tell against paltry gas sales.

Company operating expenses have quadrupled to $4.7 million, although the company wields $100 million in cash for coming exploration and production. The company’s main assets include the Mnazi Bay gas field, the Msimbati gas field and a prized location onshore and offshore the Rovuma Block, a vast unexplored basin (“The Last Basin”, see Scandinavian Oil-Gas Magazine) crossing into neighbouring Mozambique.

Artumas and partner Anadarko Petroleum are studying drilling prospects for 2009 based on ongoing “2D” and “3D” survey work.

Meanwhile, a decision by the Tanzanian government is “imminent” over the selling of compressed natural gas by ship to “nearby” Kenya. Artumas recently won an okay for “large-scale” gas sales to planned 300 Megawatt power plant at Mnazi Bay.

Tags: Anadarko Petroleum Corporation