Austral Pacific may sell assets

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

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