Global Petroleum’s shares took a significant hit, dropping by 37% in early trade, as the company announced its need to raise funds through a share placing. This move is necessary for the company to meet upcoming payments and continue its operations smoothly.
As of 0836 GMT, the shares were down by 0.04 pence, currently standing at 0.07 pence.
Exploring strategic alternatives to preserve and enhance shareholder value is a top priority for the AIM-listed energy company. To achieve this, strengthening the company’s finances in the near future becomes an urgent task.
Global Petroleum stated that it requires funding to fulfill its upcoming license and other payment obligations due to insufficient cash resources. As of October 23, the company’s cash balance stood at $376,000. It is worth mentioning that the group has no debts, aside from those owed to suppliers. In order to preserve cash resources, all directors have chosen to defer their salary and fees.
In terms of financial performance, Global Petroleum reported a pretax loss of $1.3 million for the year ended June 30, compared to $1.6 million from the same period in the previous year.