SPRINGHILL – The future of coal bed methane exploration in Springhill is now in doubt.
The directors of Stealth Ventures have put the company up for sale as part of a strategic move for furthering the company while gas prices are low. Part of that sale could include its 177,000-acre interest in Springhill, where the company has an exploratory well.
“Gas prices haven’t recovered since 2008 and we don’t see it coming in the next 12 to 15 years,” Stealth Ventures CEO Derek Krivak said.
The economic downturn of 2008 took a toll on many North American Companies but elsewhere on the globe gas prices have been returning to sustainable rates for producers. In Canada and North America, however, the same cannot be said and in 2009 Stealth Ventures began to look ahead at its options.
“Different options can play out, including selling our Alberta assets, recapitalizing the company or financing. There are different option and we feel at this stage its best for the shareholders,” Krivak said. “We are looking at this as part of the process and anything is possible.”
To negotiate the company’s future, Stealth Venture’s have hired Sayer Energy Advisors to sit at the table with prospective investors.
“I can say we have had good uptake since the announcement,” Krivak says.
Stealth Ventures began methane gas exploration in Springhill, a former coal mining community. At the time the company also held interest in the Stellarton area but later sold off its rights to East Coast Energy Inc.
In June of this year, Stealth Ventures transitioned into international markets, forming an agreement with the Oil and Natural Gas Corp in India.