UMC Energy fails at funding, announces planned delistingStaff writer ▼ | March 5, 2016
UMC Energy announced its impending delisting, after repeated failed attempts to raise equity funding. The announcement came after discussions with its major shareholder, Natasa Mining.
UMC Energy The company had been dependent on Natasa loans
UMC's main undertaking was currently the development of the Papua New Guinea petroleum project, in which it held a 30% equity interest, cost-carried to production. The remaining 70% interest was held by CNOOC Ltd, which was also the operator of the project licences.
"As such, the company's interest is relatively passive with operating progress of the project under the control of CNOOC, albeit with the company playing an advisory role and having significant influence over policy decisions," UMC's board said in a statement.
It said the company had, for many years, been dependent on loans being made available to it by Natasa, to meet its working capital and other requirements.
Over the past several years, the company had undertaken activities aimed at raising additional equity capital, which had not proved successful. UMC said the endeavours had been made more difficult by the decline in the oil price on commodity markets over the period since June 2014. ■