Troubled offshore oil and gas operator, PA Resources, is to hold a fire sale of assets after being unable to refinance its debts.
The Swedish based firm has in recent months been looking at ways of sorting its financing,to secure the company’s future, undergoing a lengthy review back in April 2015.
The review focused on three likely options available to the company: long-term financing; a merger or acquisition by another company; or least palatable- a sale of company assets and subsidiary companies.
A press release from the company, dated 17th November, said that during this review, a ‘significant number’ of companies were contacted, from financial institutions and potential investors to other oil and gas companies when looking for mergers.
PA Resources said that having closed the review, with no companies coming forward, showed the only viable option open to the company was the sale of assets.
PA Resources, has a number of exploration license across the North Sea, including the UK, Denmark, the Netherlands and Germany. It also holds an exploration licence in Congo.
Currently the company’s only producing assets are in Tunisia, a mixture of onshore and offshore licences.
Further to assets sale, PA Resources has also announced that it will apply to have its share delisted from the Nasdaq Stockholm exchange.
The company said that the move has been agreed with its shareholders, during an extra general meeting held on 27th October 2015.