Circle Oil share price plummets after it warns “little or no value” left for shareholders
Circle Oil tumbled as much as 75 per cent to 0.5p per share this morning, after it warned shareholders there could be "little or no value" left.
The bleak assessment is based on the Aim-listed firm's $77.5m (£53.2m) outstanding debt position, as well as "indicative proposals" it's received to date.
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It said that a further update will be given in due course.
Circle is conducting a strategic review into possible asset sales, a merger with another company, the sale of all its shares and raising additional capital through a share issuance.
It came after the oil explorer was forced to extend the redetermination of its $57.5m reserve based lending facility with the International Finance Corporation to 15 April.
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Its cash flows and financial position are under significant pressure, mainly due to tumbling crude prices and impacts relating to payments for oil produced in Egypt.
It had cash of $10m as of 31 December, and receivables from Egypt and Morocco of $21.6m. Its total debt position is $77.5m and there is a further $14.1m in trade credits.