- Xstate Resources (XST) changes leaders and focus on becoming a Canadian oil producer after increasing its interest in Alberta Plains
- The company announced David McArthur will step down from the Managing Director role, with Andrew Childs to take over as the Executive Chairman
- The changes come as XST increased its working interest in Blue Sky Resources’ oil and gas fields to 35 per cent at a cost of C$1.25 million (A$1.34 million)
- The company also confirmed it will walk away from buying ABC’s assets in Alberta and British Columbia, Canada
- Xstate shares are down 10 per cent at 0.5 cents per share
Xstate Resources (XST) will change leaders and focus on becoming a Canadian oil producer after increasing its interest in Alberta Plains.
The company announced on Wednesday that David McArthur would step down from his Managing Director role, effective immediately.
Mr McArthur plans to stay on as XST’s Company Director and Joint Secretary, while Andrew Childs has been tapped to take over the leader role as an Executive Chairman.
XST said Mr Childs focus would be on transitioning the company into a Canadian oil producer.
To support this, Xstate announced on Wednesday it had increased its working interest in Blue Sky Resources’ oil and gas fields to 35 per cent.
The additional interest would alsocost XST a total of C$1.25 million (A$1.34 million), with the payment set to be paid in cash and shares.
Mr Childs said the extra interest in the 7 assets in Alberta Plains would deliver an additional 178 barrels of oil equivalent per day (BOEPD) of net production.
“This acquisition is another important step transforming Xstate into a focussed North American oil and gas producer,” Mr Childs said.
“Our total production in Canada is now 474 BOEPD with well over 90 per cent of this being oil, and this production is increasing daily with further low cost remedial work.”
Finally, XST also announced today it would walk away from buying ABC’s assets in Alberta and British Columbia, Canada.
The company said the opportunity in the Alberta Plains was seen as better value for shareholders than ABC’s assets.
Xstate Resource shares were trading down 10 per cent at 0.5 cents each at 11:04 am, AEST.