30th Sep 2014 14:16
LONDON (Alliance News) - 3Legs Resources PLC said Tuesday that it has concluded that a return of its remaining cash resources to shareholders, followed by an orderly liquidation of its business would be in the "best interests" of its shareholders after pulling out of its three Baltic Basin concessions earlier this month.
3Legs has given a notice of termination to all of its officers, employees and consultants. It expects to approve the return of not less than GBP15.5 million to shareholders at an extraordinary general meeting in November, equivalent to 18 pence per share.
Shares in the company are trading up 6.66% at 18.00 pence per share Tuesday afternoon.
It will hold a second extraordinary meeting in the first quarter of 2015 to place the company into voluntary liquidation, a final distribution will be made following the conclusion of this liquidation.
On September 17 the company exercised its option to withdraw from the concessions after testing at the Lublewo LEP-1ST1H horizontal well. The company concluded that it could no longer justify further investments in the concessions as the well flowed at rates it did not consider commercially viable.
The company is continuing to investigate options for its three eastern Baltic Basin concessions, and is in discussions with potential partners over the funding of a programme of further activity on the concessions; if these discussions are not concluded in its available time frame it will surrender the concessions.
In the half-year to the end of June the company posted a pretax loss of GBP1.5 million, swung from a loss of GBP27,000, hampered by a foreign exchange loss of GBP200,000 in the period compared to a foreign exchange gain of GBP1.5 million in the previous year.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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