20/10/2008 - 10:14

WGP slumps as cash reserves dwindle

20/10/2008 - 10:14

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Shares in Westralian Gas and Power have slumped nearly 30 per cent as the company reports cash reserves of $7000 at the end of the September quarter.

WGP slumps as cash reserves dwindle

Shares in Westralian Gas and Power have slumped nearly 30 per cent as the company reports cash reserves of $7000 at the end of the September quarter.

The stock's share price dropped from Friday's closing price of 3.5 cents to 2.5c, a fall of 28.5 per cent.

In its quarterly report, the company posted a plunge in cash reserves from the previous quarter's $206,000 to $7000.

The company said that due to a slump in oil prices, it is looking to sell its interest or form a joint venture over its Kentucky projects.

"Expressions of interest in the leases have been received and are being reviewed," WGP said.

"The leases are producing sufficient oil on 'care and maintenance' to cover the field operating overheads of the company's subsidiary Sunset Energy LLC."

In August, WGP entered into a gas exploration deal with a private resources company owned by India-born billionaire, Pankaj Oswal, Oswal Resources Pty Ltd.

The memorandum of understanding covers all onshore WA resource properties held by WGP.

Oswal Resources will fully fund exploration of WGP's coal seam gas leases in WA's south west to bankable feasibility studies.

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