Circle Oil today confirmed it was considering a complete sell-off as it battles building debts.
It launched strategic review after understanding its borrowing base could be reduced, leaving it with a potential shortfall.
The London- listed company’s debts total $77.5million.
A company spokesperson said: “The scope of the options being considered under the Strategic Review include, but are not limited to, a sale of one or more of the company’s existing assets, a corporate transaction such as a merger with a third party, the sale of the entire issued, and to be issued, share capital of the company and the raising of capital in the form of a subscription for new ordinary shares in the company by one or more third parties.
“There can be no certainty as to whether any such agreement, offer or transaction will be forthcoming or as to the terms of such agreement, offer or transaction, if any, including any requirement for shareholder approval.”
In the short-term, Circle has struck a deal with the International Finance Corporation to defer its repayment under its RBL facility, which is currently drawn to $57.5million.
Chief executive Mitch Flegg added: “The agreement we have reached with IFC to defer the December 2015 redetermination and to provide a waiver in relation to any immediate repayments is a welcome development and one which gives us the headroom to progress the Strategic Review and to put in place a sustainable long term financing structure for the business. Circle has excellent assets across our regions of operation and our aim, mindful of the sustained low oil price environment and the Company’s stressed financial position is to maximise the value from these assets for the benefit of all stakeholders.”