Firm gets approval to delist shares

The National Business

KINA Petroleum Corporation has received approval from ASX Ltd (ASX) and the Port Moresby Stock Exchange (PNGX) to remove its ordinary shares from their official lists.
In an announcement, in conjunction with the delistings, the company is proposing to use up to AU$1.28 million (K3.46mil) of its available cash resources to offer and undertake an off-market buy-back of its shares which would allow shareholders the opportunity to sell up to all of their shares to the company.
After the delistings, the company directors propose to return a portion of the remaining funds from the Buy Back Cash Return by way of an equal capital reduction.
The company’s board of directors considers the delistings to be in the best interests of the company and its shareholders because of the:

  • Small trading volumes having disproportionate effect on share price;
  • Inability to raise capital at prices reflective of underlying asset value;
  • Minimal liquidity and investor interest due to highly concentrated shareholdings; and,
  • High ongoing costs.

A company statement said with the significant drop in oil price and the Covid-19 overhang, there had been a number of significant changes to the PNG exploration landscape particularly in Western.
“Hundreds of millions of dollars’ worth of investment have been made evaluating discoveries in the foreland of Western,” it said.
“Repsol, Horizon and Osaka Gas have recently withdrawn from the region and the company sees new opportunities materialising and continues to evaluate opportunities, including corporate transactions, to enhance value to our shareholders.
“There is no certainty that any of these opportunities will come to fruition or, if any of them does come to fruition, that it will generate the anticipated returns for shareholders.”
Kina Petroleum Corporation is a PNG-registered company established in 2009 to apply for and acquire oil and gas exploration and production concessions in PNG.