GR’s Northern Oil woes remain unresolved

GR Engineering Services has been suspended from the ASX as the company continues to seek clarity after two major subsidiaries of its client Northern Oil & Gas Australia went into administration on Friday.

GR’s request for voluntary suspension for the trading of its shares was granted by the ASX today, after the company originally went into a trading halt on Friday shortly after the administration was announced.

Northern Oil owns the Northern Endeavour vessel, which operated in the Timor Sea.

The vessel was ordered to halt operations on July 10 by the National Offshore Petroleum Safety and Environmental Management Authority, due to structural corrosion concerns.

It is currently moored and operated by Upstream Production Solutions, which is a subsidiary of GR Engineering.

Today, the Geoff Jones-led GR said it was waiting on additional information in regards to whether Timor Sea Oil & Gas Australia (TOGA), which is one of the subsidiaries in administration, would be able to continue its business operations and the prospects of the Northern Endeavour being funded back into production.

The company requested its shares remain suspended until its makes an announcement or on October 1.