Shares digital

The sudden departure of two leading lights leaves Seymour Pierce questioning the ability of who is left

by Simon Keane

Analysts warn that Gulfsands Petroleum may no longer have the experience to develop its key Khurbet East Syrian oil discovery following the shock resignation of its chief executive and finance director.

Chief executive John Dorrier, the founder of the business, resigned last week along with the company’s chief financial officer David DeCort, and analysts at independent broker Seymour Pierce have raised concerns about the sudden departures.

‘We have always seen John Dorrier and Dave DeCort as the safe pair of hands within the organisation,’ says Seymour’s Peter Hitchens. ‘We believe that these two had the ability to effect the development of Khurbet East. Without these two there is little expertise within the other executive board members.’

Chairman Andrew West has been made the interim executive chairman while a new senior management is found, news of which can be expected ‘shortly’ says the company. The official reason for the resignations was put down to a decision to move the headquarters from Houston, Texas to London.

The company says it is shifting operations eastwards in response to Khurbet East becoming much more significant than Gulfsands’ other assets in the Gulf of Mexico. News of the resignations was accompanied by details of a new fund raising.

Gulfsands is to raise £9.4 million via a placing of new shares with fund management group Och Ziff. Despite the shock departures shares in Gulfsands have remained steady currently at 166.8p, compared to 161.5p ahead of the announcement.

Shares says: A major blow, the right replacements wil have to be identified fast to maintain credibility.