UPDATE: Rodinia Oil Corp Still Reeling From Australian Announcement, Hits A New Low Of 5.5 Cents
Rodinia Oil Corp (ROZ.V) shares hit a new year low of 5.5 cents in morning trade, though the shares have recovered slightly and are now trading at six cents.
This still represents a 7.69% drop from yesterday's close. More than 2.1 million shares have now changed hands.
Rodinia's shares took a severe hit after company announced two days ago 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.
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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