News blog
Silvermere Energy
- BY: Andrew Hore |
- POSTED: 20/12/2011 |
Shares in US-focused oil and gas company Silvermere Energy have slumped after it revealed that there is a delay in commencing production at the I-1 well on its Mustang Island asset in the Gulf of Mexico.
They have fallen 6.75p to 14.25p, which values the company at £2.65m.
Adverse weather conditions and the additional costs that would be incurred have prompted the operator of the field to suspend installation of the oil platform. New deck height regulations have also contributed to the delay.
The operator is saying that the platform will be installed at the same cost as originally agreed.
These delays will hit the cash flow of Silvermere. However, it will not have to make any more stage payments on the installation until it is completed. Going ahead immediately would have incurred additional costs.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFDecember2011_27.pdf
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