Metgasco hunting for new opportunities

PERTH (miningweekly.com) – ASX-listed Metgasco on Wednesday told shareholders that the company had set itself the task of identifying relevant, value accretive opportunities, and securing these within the first six months of 2016.

The company believed that the current oil price environment would offer attractive opportunities for cashed-up companies.

Metgasco’s focus on new business opportunities in the oil and gas sector comes after shareholders in December agreed to sell three of the company’s Northern Rivers petroleum exploration licences to the New South Wales state government for A$25-million.

Shareholders also voted to withdraw Metgasco’s legal action against the New South Wales government.

Metgasco said on Wednesday that plans to decommission the remaining two wells in the Northern River region, and to shut down all operations within the first few months of 2016 were continuing.

While hunting for new business opportunities, Metgasco would also be focused on managing cost and capital, with a series of cost cuts introduced, starting with a reduction in director fees and MD remuneration, and outsourcing the CFO and company secretary roles.

Other cost reduction measures have also been identified and would be implemented, as appropriate, through the next few months, the company said.