Shares of Petro Matad Plunge 40% as Drilling Delayed, CEO Steps Down
September 19 2017 - 6:15AM
Dow Jones News
By Adria Calatayud
Shares of Mongolian oil explorer Petro Matad Ltd. (MATD.LN)
plunged as much as 40% in early trade Tuesday after the company
said that drilling at its Snow Leopard well will be delayed and
that Chief Executive Ridvan Karpuz will step down next month.
The U.K.-listed company said the rig contracted with China
Petroleum & Chemical Corp. (SNP), or Sinopec, to drill at Snow
Leopard is still in the process of obtaining certification. The rig
was supposed to be certified by Sep. 15, but Sinopec won't be able
to do this before October and there won't be enough time to
complete the drilling before winter, Petro Matad said.
Petro Matad added that it has entered discussions with Sinopec
on potential remedies and it will either terminate the contract
before issuing a new tender or continue with the Chinese company as
contractor.
The oil company said that Mr. Karpuz will be stepping down as
CEO in mid-October. The search for a successor has already started,
Petro Matad added.
Shares at 0939 GMT were down 38% at 6.38 pence.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
September 19, 2017 06:00 ET (10:00 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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