Genesis (ASX:GNE) launches strategic review of Kupe holding

Company News

by Katrina Bullock

New Zealand energy company, Genesis Energy (ASX:GNE) today announces that it is undertaking a strategic review to determine whether to sell or retain its interest in Kupe.

Genesis owns a 46 per cent stake in the Kupe oil and gas field.

The joint venture is considering further development, including drilling an additional well and further exploration, which would change the risk and opportunity profile of the asset for Genesis.

The company says the asset has attractive cash flow and a strong growth outlook but that it needs to consider whether there are capital investment opportunities which are more strategically aligned with its goals.

RBC Capital Markets have been appointed to assist with the review. The outcome of the review is expected to be communicated in mid 2021.

Shares in Genesis Energy (ASX:GNE) last traded at $3.09.