New World Oil & Gas (LON:NEW) has relinquished its assets in Denmark amid low crude prices and uncertainty over the AIM quoted firm’s future direction.
It has given up stakes in both the Danica Jutland and Danica Resources projects after failing to secure farm-in partnerships.
This comes after rebel shareholders, owning 11% and represented by the lobby group NWOGaction, on Friday proposed “a radical departure” from the current business into medical technology.
The shareholder group is backing the nomination of three directors to the board at the company's forthcoming annual meeting. They said one of the candidates, Adam Reynolds, had identified a project and team to take the company into medical technology.
Reynolds and the other two candidates, Nick Mustoe and Mark Collingbourne, have been involved in medical companies Optibiotix Health (LON:OPTI) and Premaitha Health (LON:NIPT).
In the meantime, chairman Chris Einchcomb and chief executive Peter Sztyk intend to hold an investor conference call on Thursday to discuss the company’s strategy following a recent £3.5mln share placing.
Einchcomb, in today’s statement, highlighted that as a result of the recent funding the company is now well placed to continue to pursue projects in the oil and gas sector.
"Although the price of oil has made it a challenging time for many E&P companies, we believe it has also created many opportunities to acquire undervalued late stage projects.
“With funding recently secured we are well placed to pursue projects that provide near-term cash flow as well as progress our on-going farm-in discussions for our Blue Creek Project in Belize which is at a drill-ready stage.
“We will continue to update shareholders on our progress as and when negotiations mature."
Einchcomb added that the company had maintained good relationships in Denmark, despite having to relinquish the assets there, and as such he says the company is still in a good position to seek opportunities in Denmark in the future.