News

October 13, 2009

Muted Gas Prices Prompt Admiral Bay Resources To Start Another Strategic Review

Admiral Bay Resources, the Colorado-headquartered coal bed methane specialist, has started a review of its strategic options, just over two years after it concluded a previous strategic review. This time round the TSX Venture-listed company has engaged FIG Partners as financial adviser to help it analyse its options, including potential merger opportunities or the restructuring of its credit facility with Gasrock Capital.

In January 2007 the company hired RBC Capital Markets to help explore its strategic alternatives following unsolicited takeover interest and a cash crunch, which arose when its then bankers didn’t deliver a new credit line. The resulting strategic review proved an unwelcome distraction from the core business, namely developing unconventional gas resources in the US. It ended eight months later with the signing of US$100 million credit facility with GasRock, with the capital released...