REG - Star Phoenix Group - Update on the Oilfield Services Business

Star PhoenixAnnouncement

09/10/2020 07:01

RNS Number : 6190B
  
Star Phoenix Group Ltd
  
09 October 2020
  
 

Star Phoenix Group Ltd
("Star Phoenix" or "the Company")
 
9 October 2020
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN. 
 
UPDATE ON THE OILFIELD SERVICES BUSINESS
 
Star Phoenix (AIM: STA), an international company with an oilfield services business in Trinidad and an oil and gas interest in Indonesia, provides the following update in relation to its oilfield services business (RRDSL). 
The Company has had to take the necessary steps to further cut the ongoing costs of RRDSL in light of the COVID-19 pandemic which continues to negatively impact businesses worldwide. As part of the cost reduction programme, the Company completed a comprehensive organization restructuring of RRDSL along with other cost cutting measures. It is expected that during the current financial year (FY2021) there will be a targeted 85% reduction in the annual operating costs compared with the prior financial year.
The Company also signed an agreement with a third-party operator to dry lease some of the equipment including mud tanks and a generator to derive additional revenue.
In addition, agreements were signed to sell four smaller production rigs for a total sum of US$0.2 million. The Company continues to evaluate sale opportunities of the remaining eight rigs including four modern drilling rigs and will provide an update upon any material developments. 
This announcement has been approved by Chairman Kerry Gu on behalf of the Company.
 



 
Contact Details
 








 
Star Phoenix Group Ltd 
Evgenia Bezruchko (Group Corporate Development Manager & Joint Company Secretary)
e. admin@starphoenixgroup.com
t.   +44 (0)20 3865 8430


WH Ireland Limited (Nominated Adviser and Broker)
James Joyce / Matthew Chan
t.   +44 (0)20 7220 1666



 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
  END
 
 
UPDUPGMUUUPUUAB