The COVID-19 pandemic combined with the precipitous fall in Brent oil price by over 60% since January 2020 has adversely impacted global financial markets including the global availability of credit.
Consequently, the Company’s ability to close the Sangomar Project debt arrangements that were ongoing during this time have been compromised such that the lead banks to the senior facility have now confirmed that they cannot complete the syndication in the current environment. As a result, the Board is of the opinion that, in addition to the senior facility, neither the junior nor mezzanine facilities that were being arranged will be able to be completed for the foreseeable future. At the end of February 2020 the company had approximately A$150m cash at bank and no debt.
As announced on 25 March 2020, the Sangomar Operator, Woodside, and our joint venture partners continue to explore and evaluate all options to preserve and enhance the value of this world class development.
The company will provide further information on this review by the joint venture as appropriate. In view of the current global economic climate, the Board has commenced a process to review all strategic alternatives available to the Company which are focussed on preserving shareholder value for the longer term.
