UPDATE: Rodinia Oil Corp Loses Nearly Two Thirds of Its Value, Hit New Yr Lows Today on Australia News
Rodinia Oil Corp (ROZ.V) shares have lost nearly two thirds of their value and and have hit a new year low of 6 cents today with more than 9 million shares traded, making it the most active on the TSXV. Current values compare with a 20 day SMA of 20 cents, a 50 day SMA of 32 cents and a 100 day SMA of 67 cents. ROZ hit record highs of $3.45 at the turn of the year.
This comes 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.
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