(Alliance News) - Attis Oil & Gas Ltd said Monday it is looking into mergers or a reverse takeover in an attempt to "survive the depressed market conditions".
Attis said it has closed its oilfield services division due to increased pressure from Covid-19.
Executive Chair Paolo Amoruso said: "It has been an extremely challenging quarter for the Company and the board is working to preserve shareholder value, obtain the best price for the assets and where necessary, cut costs and non-profitable divisions in this depressed commodity environment.
"We are further taking all steps necessary to shut in oil wells in anticipation of further restrictions on the movement of people. I thank the loan holders for the extension of the loan repayment period and all shareholders in this very difficult time."
Attis secured a one-month extension to its five-month senior secured funding facility of GBP460,000, from six shareholders and the company's Chief Operating Officer Thom Board and Chair Amoruso, that was due on or before March 21.
Further extensions will be evaluated by the loan holders on a month to month basis.
The material terms of the facility comprise interest of 10% per annum accruing monthly and paid with principal at the end of the five month term, a fixed and floating charge over the company's Zink and Austin assets, and the issue of 460 million five-year warrants priced at 0.1 pence per share.
Shares in Attis Oil & Gas are currently suspended.
The company's previously announced plan to dispose of its interests in the Austin Field, Zink Ranch and Fort Worth continues to progress.
"Current commodity price fluctuations have made the operation and sale of the Austin Field more challenging. In order to preserve cash, reduce wear and tear on the assets, and reduce ongoing cost, the Austin Field will be shut in until oil prices rebound. The company continues to advance the sale of Zink Ranch with multiple parties, but the current environment has created a liquidity crunch requiring an extension to the time to close," Attis said.
By Paul McGowan; paulmcgowan@alliancenews.com
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