Update on the Oilfield Services Business

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. [e-mail] t.   [phone]	WH Ireland Limited (Nominated Adviser and Broker) James Joyce / Matthew Chan t.   [phone]

 

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