Global Petroleum (AIM:GBP) Limited’s shares tanked 30% in early trading after it provided what on the face of it was a particularly bleak assessment of its prospects.
In common with almost all micro-caps at present, Global appears to be finding it difficult to access capital.
As of 30 June, the end of its financial year, it was sitting on just over $356,000.
Put simply, that is not enough for it to meet its financial obligations offshore Namibia.
Frustrating will be the fact that the junior explorer is sitting on a slice of the Orange Basin, one of the hottest oil exploration destinations in the world at the moment. Both Shell and Total have made monster discoveries in the waters off southern Africa.
In its annual results statement, Global investors were told: “The company continues to explore all strategic alternatives in order to preserve and maximise shareholder value.
“In order to facilitate this, the urgent priority for the company is to strengthen its finances in the very near future.
“At the company's request, the Namibian authorities have extended the deadline for Global to provide the work programme guarantee required under the licence renewal until the end of November 2023.
“Absent further extensions/deferrals, the company requires significant additional funding in order to meet its licence and other payments due in the near future, for which the company does not currently have sufficient cash resources.”
At 9.16 am, the shares were changing hands for 0.081p, down 0.034p.