LONDON (Thomson Financial) - Baltic Oil Terminals PLC said it is considering
a range of options for its exploration assets in the Kurgan region in Russia.
This was after conducting a strategic review of the assets, which include
the Mok-1 and Privolny-1 wells that both encountered hydrocarbons.
"The strategic review concluded that significant time and resource will be
required to realise its full potential and accordingly short, medium and long
term growth in shareholder value will be most effectively achieved by
concentrating the company's financial and operational resources on its core
terminal businesses and related infrastructure activities in Kaliningrad,"
Baltic Oil said in a statement.
The core operations are either already generating revenues or are close to
doing so, it added.
The group said the options it is looking at hopes to reduce its financial
and operational exposure to exploration and allow it to concentrate on the core
businesses.
"The board believes it is in a strong position to maximise the value of its
exploration interests for the benefit of shareholders," it stressed.
Baltic Oil just finished drilling Mok-1 well in the Mokrousovsky licence
area, where it is the operator.
The hole encountered hydrocarbon shows in various sections. A final report
on the well will be released within two months, the company said.
monicca.egoy@thomson.com
mbe
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