Star Phoenix in 'advanced discussions' over new projects

Star Phoenix updated the market on its recent activities on Thursday, reporting that “advanced discussions” were underway in relation to new projects.

The AIM-traded firm also said a specialist broker had been appointed to assist with the sale of its rig business, adding that a lease agreement had been signed for one of the rigs, with further being secured to provide additional revenue during the rigs sale process.

It was also preparing for arbitration against LandOcean, with claims estimated to be more than $10m.

Work was also continuing on progressing an arbitration claim against the government of Georgia, with an investment dispute exceeding $22m.

Finally, Star Phoenix said its oil and gas interest in Indonesia would now be relinquished.

“The company's key focus remains on securing new opportunities to provide future growth and value for the company and its shareholders,” the board said in its statement.

“Over the last year, the company has considered, reviewed and evaluated numerous projects and investment opportunities with a view of securing attractive targets.”

Its directors said the firm was currently in “advanced discussions” on a selected number of investment and joint venture opportunities, and was focusing its efforts to progress to the next stage.

“The board believes these new opportunities would offer shareholders exposure to significant plays in the energy sector and looks forward to sharing the details of these potentially value enhancing opportunities should they progress to binding deals.”

At 1238 BST, shares in Star Phoenix were flat at 1.55p.