LGO Energy, the Trinidad-focused independent oil and gas firm has said it is open to offers as part of a formal strategic review.
The company said the review of its business and assets would entail considering all options to maximise shareholder value.
It will now consider partnerships, investments, asset sales, mergers as well as potential offers.
As well as considering “potential offers” and mergers, the company will also mull strategic partnerships and investments.
Goudron is host to 15 new development wells, while the firm has reactivated over 60 old wells drilled around three decades ago.
The board of LGO today announces that it has initiated a formal strategic review of the company’s business and assets with a view to considering all options to maximise shareholder value.
The UK-registered company owns and operates, through a wholly owned subsidiary the production service contract for the Goudron oil field in south eastern Trinidad. It has recently drilled 15 new development wells and has reactivated over 60 legacy wells drilled prior to 1986.
The company also owns and operates the Ayoluengo oil field onshore in northern Spain.
In a statement, the company said: “Against the backdrop of a sustained period of low commodity prices and the company’s specific situation announced November 3, which was brought about by the loss of well GY-678 in Trinidad and the resulting financial and business impacts, the company mandated advisors, Wellford Capital Markets, and Height Securities in the USA to assist in strategic funding arrangements.”
The company previously revealed in October the loss of well GY-678 and the downhole equipment it contained as well as the anticipated production from the well.
The board said that LGO possesses high quality assets and an experienced and successful management team, and that all options available to the Company should now be considered.