Jersey based exploration company New World Oil and Gas has written to shareholders over a proposed move to relocate to the British Virgin Islands.
The firm hopes to make the move in order to avoid a greater burden of financial legislation as a result of it making additional investments.
According to the company “a number” of shareholders have raised concerns about the change of base, prompting the letter.
It states: “The board is of the opinion that remaining in Jersey is no longer a viable option for New World.
“This is principally because if the company were to make additional investments (as it intends), it is likely that New World would need to apply to be regulated as a fund in Jersey.
“This carries with it cost implications, and a significantly higher regulatory burden.”
The letter states that an alternative move to England has been ruled out due to “prohibitive” costs and timing.
New World is recommending shareholders vote in favour of the move, which could be completed within two months if agreed upon.
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