Sharechat Logo

Austral Pacific may sell assets

Wednesday 24th September 2008

Text too small?
Austral Pacific, an oil and gas explorer whose shares have tumbled 72% this year, will consider asset sales, mergers or new capital raising as part of a strategic review.

The company has hired investment bank McDouall Stuart as financial adviser for the review, it said in a statement today. It has previously used McDouall Stuart to assist with capital raising.

"In light of the low share price, Austral Pacific has initiated a strategic review to consider all options available to the company to maximize value for its shareholders," chief executive Thompson Jewell said.

Austral posted a loss of NZ$2.5 million last quarter, from a loss of NZ$3.2 million in the same period of 2007, including the impact of oil hedges and non-cash items related to depletion of reserves and depreciation of production facilities. In June, the company raised US$7 million in a private placement of shares and warrants.

Shares of Austral fell 7.3% to 38 cents today.

By Jonathan Underhill

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.