Ramco Energy Plunges 41% After Iraq Venture Cancelled
Bloomberg - [7/8/2009]
Ramco Energy Plc, a Scottish explorer, slumped in London trading after saying an Iraqi partner yesterday ended a contract to form an oil field drilling joint venture.
Ramco slipped as much as 27.5 pence, or 41 percent, to 39 pence after the company said its Mesopotamia Petroleum unit was notified that the Iraqi Drilling Company had terminated the venture. The shares traded at 45.5 pence as of 8:56 a.m.
Ramco couldn’t get $44.1 million in financing for the proposed Iraqi Oil Services Co. by the date agreed with its partners, it said in a statement today. The company rejects the Iraqi Drilling Company’s decision and is still seeking funding.
“We believe we are making good progress in fulfilling the initial investment requirements and remain in contact with the Iraqi Government regarding progress on funding for this historic JV,” Ramco Chairman Steve Remp said in the statement. “MPC has not accepted the validity of this termination and continues to work to fulfill its funding requirements as soon as possible.”
Ramco said it is still working with JPMorgan Cazenove Ltd. to access funding to support its 49 percent stake in the proposed venture and provide initial investment capital.
Bloomberg - [7/8/2009]
Ramco Energy Plc, a Scottish explorer, slumped in London trading after saying an Iraqi partner yesterday ended a contract to form an oil field drilling joint venture.
Ramco slipped as much as 27.5 pence, or 41 percent, to 39 pence after the company said its Mesopotamia Petroleum unit was notified that the Iraqi Drilling Company had terminated the venture. The shares traded at 45.5 pence as of 8:56 a.m.
Ramco couldn’t get $44.1 million in financing for the proposed Iraqi Oil Services Co. by the date agreed with its partners, it said in a statement today. The company rejects the Iraqi Drilling Company’s decision and is still seeking funding.
“We believe we are making good progress in fulfilling the initial investment requirements and remain in contact with the Iraqi Government regarding progress on funding for this historic JV,” Ramco Chairman Steve Remp said in the statement. “MPC has not accepted the validity of this termination and continues to work to fulfill its funding requirements as soon as possible.”
Ramco said it is still working with JPMorgan Cazenove Ltd. to access funding to support its 49 percent stake in the proposed venture and provide initial investment capital.