Drilling at Nido s Baragatan joint venture prospect.
Drilling at Nido's Baragatan joint venture prospect.

UPDATE Friday 9.35am: One of Thailand’s biggest oil refiners is in the box seat to control the destiny of Nido Petroleum after yesterday swooping on a 19.7 per cent stake in the Perth producer.

Bangchak Petroleum Public Company, which owns a namesake refinery near Bangkok and processes 120,000 barrels of crude a day, said it would be paying up to 5.5¢ a share, or $22.2 million in total, to acquire the stake from Thai tycoon Chatchai Yenbamroong, Nido’s longstanding biggest shareholder.

Bangchak’s intentions for Nido remain unclear and neither side was talking last night.

Shares in Nido remain in a trading halt, having last changed hands at 4.1¢ for an $84 million market capitalisation.

The stock jumped from 3.5¢ to 4.2¢ last Friday on big volume and Nido admitted it “from time-to- time holds discussions with parties in order to maximise value for the company’s shareholders”.

It is unclear whether it was in talks with Bangchak, though the price rise would have helped Mr Yenbamroong strike an agreeable price for his Nido stake.

The price rise came just weeks after Nido’s stock tanked because of a dry exploration well off the Philippines, where much of its assets lie.

Nido’s biggest asset is a stake in the Otto Energy-operated Galoc project, which produces about 8400 barrels of oil a day.

The West Australian

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