Irish oil explorer updates shareholders on dispute with international investor
Petrel Resources said it can’t proceed to hand over second tranche of shares at present
David Horgan, managing director of Petrel Resources with John Teeling, the company’s chairman. Photograph: Brenda Fitzsimons
In a stock market announcement the company updated shareholders on its agreement with the Tamraz group approved in November at an extraordinary general meeting. The deal will see Tamraz take control of a 51 per cent stake in the company.
But completion has been delayed “due to changed circumstances, taking into account the state of markets generally in the light of Covid-19, as well as oil price volatility”.
Since it agreed the deal with Petrel, Tamraz has clashed with the company by trading millions of shares despite being in a lock-in period.
Petrel subsequently obtained an injunction from the High Court to ensure Tamraz maintains its interest of the remaining 32 million shares it controls.
“The Tamraz Group continues to work on possible investment proposals / deals to be presented to Petrel Resources plc. Should any of these proceed, it is envisaged that payment will be in the form of Petrel shares,” Petrel said in the update.
It added that it “continues to review” the position of Michael Fayad, a member of Tamraz, who was appointed to the company’s board in September 2019. It “will make a further announcement in respect thereof in due course”.
Petrel is mainly active in Ghana but also holds several exploration licences in the porcupine basin off the Irish coast.