Firm to invest in opportunities to benefit shareholders

 THE New Guinea Energy’s new strategy is to invest in opportunities for the benefit of its shareholders, the company says.  

NGE is an Australian company focused on oil and gas exploration in the country. 

On July 15, shareholders elected three new directors to its board and voted to remove two long-serving directors. 

Sir Michael Bromley is continuing as a non-executive director.

The new board is committed to reporting to shareholders the results of a strategic review within three months of being elected. They will focus on:

• Assessing the overhead structure of the company;
• increasing the level of disclosure, particularly with regards to the investment in the Western Drilling Limited joint venture; 
• ensuring management is properly aligned with long-term share price performance;
• undertaking a review of investment opportunities and capital management options, including the potential for share buy-backs or capital returns to all shareholders;
• ensuring any future investments are driven by sound investment principles; and,
• Setting the future strategic direction of the company.

“NGE will aim to use its strong balance sheet and potential future revenues to invest in attractive opportunities, with the objective of maximising returns for shareholders,” the statement said.

“The company will shift from investing in few high-cost, high-risk activities to lower risk investments aimed at delivering benefits for shareholders over the medium to long term.”

The company currently has three onshore petroleum prospecting licences covering more than 9601 kilometer-square and a royalty right over another 4000 km-square in parallel to the PNG LNG project.