Circle Oil suspends shares as investors face total wipeout
Circle Oil shares were suspended from trading today due to the Irish oil explorer's increasingly uncertain financial situation.
The Aim-listed company, which is in the midst of a strategic review, said shareholders are likely to be left with no equity value. This is based on the firm's debt position and the proposals put forward to date.
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"Accordingly, the company has requested a suspension of its shares from trading on the Aim market of the London Stock Exchange with immediate effect on the grounds of financial uncertainty," it said.
The firm, whose portfolio spans Morocco, Tunisia and Egypt, has struggled amid low oil prices. Its woes have been compounded by unpredictable payments from Egypt's state-owned oil company.
The news came as Circle revealed revenue slumped 54 per cent to $38.95m (£29.05m) for the year ended 31 December, on low oil prices and a decline in output.
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Its operating loss before write-offs and impairments was $3.84m, down from a profit $23.31 a year earlier.
The firm's debt pile was $67.47m at the end of last year, and had swollen to $69.62m by the end of May 2016.
