Delisting news imminent

PETROZ NL is expecting to hear from the Australian Stock Exchange this week concerning its application for delisting.

As part of the Phillips group, Petroz has been conducting an on-market buy-back of shares to tidy up the register and also improve its chances of delisting, which would save it quite substantial costs.

While the buy-back period extends until June 2002, with the exchange of shares slowing significantly, the buy-back may be halted well before then.

The buy-back began on June 8 this year, targeting 19.7 million shares, but 17.9 million shares remain with minority shareholders.

The former Brisbane-based oil and gas producer attracted a number of suitors last year over its 8.25 per cent interest in the potentially lucrative Bayu-Undan gas fields project in the Timor Sea.

Bayu-Undan operator Phillips Petroleum won out in February this year, acquiring 85.38 per cent of the company. Phillips then moved swiftly, effecting a clean sweep of the board and moving Petroz’s company headquarters to Perth by the end of March.

Phillips now has acquired 85.8 per cent of Petroz but has been denied compulsory acquisition, with unsuccessful suitor Italian energy giant ENI refusing to give over any of its 11.5 per cent stake, and leaving a minority of Petroz shareholders with shares worth very little on the market.

An analysis of regional meteorological data forced Petroz to announce in May this year that the cost of its Bayu-Undan construction responsibilities could exceed original estimates by up to $100 million.

While Phillips Petroleum and venture partners have now put the Bayu-Undan to Darwin subsea pipeline on indefinite hold, Petroz has reportedly drawn $US10.5 million from a $US19 million interim funding arrangement with Phillips in order to meet its Bayu-Undan obligations.

In the meantime, Petroz is doing well with Timor Sea oil, more than doubling its share of sales from its interests in the Elang, Kakatua and Kakatua North fields during the fourth quarter.

The new Petroz management has revealed its preference for interests closer to Bayu-Undan, commencing a sell-off of the company’s interests in six Carnarvon Basin permits.

The new board has also aligned Petroz’s financial year to that of Phillips Australia, ending December 31. Hence the company will not be required to hold its next annual general meeting before May 2002.