Spitfire Oil becomes cash shell as it gives up Salmon Gums licence

Spitfire Oil announced on Friday that, following a further review of the economic feasibility of the Salmon Gums lignite project, it has relinquished the retention licence over those lignite tenements.

The AIM-traded firm said it took particular consideration of the current and long-term forecast for the continued relatively low oil prices, and the continuing costs of maintaining the retention licence over the Salmon Gums tenements.

With the relinquishment of the licence, Spitfire was now an AIM Rule 15 cash shell.

“As such, the company will be required to make an acquisition - or acquisitions - which constitutes a reverse takeover under AIM Rule 14 on or before 29 February,” the board said in its statement.

“If no such acquisition is completed by 29 February 2019, the company's shares would then be suspended from trading on AIM pursuant to AIM Rule 40.”

Spitfire’s directors said they were currently considering suitable projects for acquisition by the company.