Rodinia Oil Corp Shares Endures Further Pounding After South Australian Well Abandoned, Company In Dispute With Joint Venture Partner
Rodinia Oil Corp (ROZ.V) shares have more than halved their value after the company announced yesterday that it has abandoned its second exploration well in South Australia's Officer Basin after drilling results did not indicate any commercial accumulations of hydrocarbons. As a result, Rodinia has now plugged and abandoned the well.
Since mid-November 2011, Rodinia has served default notices on its Officer Basin joint venture partner for failure to pay its share of costs (currently in excess of $2.2 million) associated with their ongoing joint operations. The partner has responded by serving dispute notices on Rodinia pursuant to the operating agreement and their related joint operations. Rodinia emphasized that this party is not yet in default, however, Rodinia's total financial exposure could reach $4 million. The parties are about to commence a dispute resolution process and depending on the outcome thereof, Rodinia expects to have working capital of approximately $5 million to 9 million at year-end 2011.
Rodinia will be conducting a comprehensive review of operations for 2012, it said in a statement.
Rodinia shares are currently trading at a dismal eight cents, down nine cents from its previous close. Its shares have been on a downward spiral since January, when it touched a year high of $3.27.
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