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- Oil and gas company Ansila Energy (ANA) has terminated its earn-in agreement for the Nowa Sol concession in Poland
- The company was set to gain a 35 per cent stake in Nowa by funding the $2.24 million Jany C-1 well work program
- However, after the market uncertainty surrounding the global COVID-19 outbreak and the material oil price weakening, Ansila has decided to cancel the contract
- Ansila remains steady on the market this morning and is trading at 0.5¢ apiece
Oil and gas company, Ansila Energy (ANA) has terminated its earn-in agreement for the Nowa Sol concession and Jany- C1 well work program in Poland.
The company was set to gain a 35 per cent stake in Nowa by funding the $2.24 million Jany C-1 well work program.
The Jany C-1 program was scheduled to commence in the second quarter of 2020.
The decision comes after the market uncertainty surrounding the global COVID-19 outbreak and the material weakening in the oil price.
Ansila believes the allocation of capital to lower risk conventional resource projects and new ventures, whilst preserving capital in the near-term, remains in the best interests of shareholders.
“Our withdrawal from the Jany-C1 well work program is a reflection of the current difficult market conditions and shareholders risk aversion to unconventional
resources following the results of the Siciny-2 well operations,” Chairman Bevan Tarratt said.
“The withdrawal allows the company to preserve its cash resources, progress new venture opportunities and focus on its conventional assets in the near-term, which we look forward to updating investors on in the near future,” he added.
The company’s 35 per cent interest in Nowa Sol will revert back to Gemini Resources (GRL), who will hold a 100 per cent interest in the project.
Ansila remains steady on the market this morning and is trading at 0.5¢ apiece at 10:22 am AEDT.
