2 May 2009

Austral Pacific Energy in receivership

2:58 pm on 2 May 2009

Oil explorer Austral Pacific Energy has been placed in receivership by its banker.

Austral Pacific, which operates the Cheal and Cardiff oil and gas fields, lost nearly $US44 million in the last year.

The troubled company had struggled to repay the $16.8 million it owed its bank, Investec.

Investec has appointed receivers Taylor Woodings, based in Perth, and Gerry Rea Partners of Auckland, to manage the company as it repays the money owed.

Paul Sargison from Gerry Rea Partners says production at the fields will continue, and that it is business as usual for the company under the receivers' management.

Mr Sargison was meeting Austral Pacific's directors and staff on Friday, and would have a better idea of how the company is placed in a few days.

The NZX has suspended trading in the company's shares.