Cineworld shares recover 28.96% to 5.64p on continued volatility after warning of share dilution and possible Chapter 11 bankruptcy in US
Cineworld shares remained volatile after the company confirmed last week it was considering filing for Chapter 11 bankruptcy in the US. The group is struggling under the weight of a near £9bn debt pile built up in an ambitious global acquisition spree, and said that although its Cineworld and Regal chains were still trading, admissions since the post-pandemic reopening had been below expectations due to a "limited film slate".
As well as a possible bankruptcy, Cineworld said that it is evaluating "strategic options to both obtain additional liquidity and potentially restructure its balance sheet through a comprehensive deleveraging transaction".
Shares bottomed out at 1.9p and have since recovered to 5.6p. However, they remain down 70% since the initial warning of restructuring and share dilution on 17 August.
RC365 Holding shares rise 16.67% to 20p on appointment of new CFO
RC365 shares continued rising today after the company announced on Tuesday the appointment of Timothy Tang as CFO, effective immediately.
Mr. Tang joined the company in October 2020 and has nearly 20 years of audit and accountancy experience, RC365 said. Previously, Mr. Tang was Partner at William Lee, Paul Tang & Co. and a Senior Auditor at Ernst and Young.
Mr. Tang replaced Hon Keung Cheung who resigned due to personal health concerns.
Petroneft Resources shares recover 23.08% to 0.8p on continued volatility following closure of Russian wells
Petroneft Resources shares recovered 23.08% today after the company announced on Tuesday it was halting operations at its License 61 field in Tomsk Oblast, Russia after Nord Imperial suspended oil acceptance and transfer from the site. Shares are still down 20% since the announcement.
Petroneft said it had been in discussions with Nord Imperial for several years trying to secure more market-standard rates as, without such, further investment in Licence 61 was hard to justify for the company. To date, these discussions have not resulted in any meaningful offer or agreement, the company said.
Petroneft said production from Licence 67 was unaffected by the situation, with the C-4 well continuing to produce at c. 270 BOPD.
David Sturt, CEO, commented:
"The contract with Nord Imperial for the transfer of our oil from Licence 61 is far above standard market rates, and we believe Nord Imperial has, for many years, been acting in a monopolistic manner, charging non-competitive tariff rates. The suspension of acceptance of our oil, whilst disappointing, will not change our determination to seek an equitable solution for both parties.
We will work hard with our partner (Oil India Limited) and Nord Imperial to resolve this issue as our priority is to protect the interests of our shareholders".
Upland Resources shares rise 20% to 0.3p on Joint Technical Study in Malaysia
Upland Resources said it has signed a Joint Technical Study agreement with Petros, a Malaysian state-owned oil and gas exploration firm. The agreement covers Block SK334 in the northern region of Onshore Sarawak, Malaysia, an area of approximately 6,685 sq km.
Upland said the main objectives of the study would be to de-risk the petroleum system elements and upgrade the understanding on the prospectivity of Block SK334. The study is expected to complete by the end of 2023.
Bolhassan Di, Chairman, commented:
"We believe that the outcome of the Joint Technical Study will give Upland an advantage for the subsequent stages in Block SK334.
...
Upland is looking forward to starting the [study] immediately, and is optimistic about the results to be obtained, considering that the Block SK334 is located next to a prolific petroleum basin which has witnessed oil production since 1929."