Oct. 18 (Bloomberg) -- 3Legs Resources Plc, a Polish shale gas explorer, plans to repurchase shares under new Chief Executive Officer Kamlesh Parmar after its stock slumped 70 percent in the past year.
“The equity markets are significantly undervaluing the company’s potential and, while this continues, we will take advantage of this to the benefit of our shareholders by seeking authority to buy back shares,” Parmar said today in a statement.
Parmar, who previously ran operations in Poland, handled relations with ConocoPhillips after the Houston-based explorer acquired a 70 percent stake in three western Baltic Basin concessions from 3Legs earlier this year. He replaces Peter Clutterbuck at the Isle of Man-based company.
“This will likely to be a smooth transition and positive for the company,” Laura Loppacher, an analyst at Jefferies International Ltd., said in a note to clients.
The stock has fallen on disappointing results and concern that Poland’s shale potential was over-estimated, a factor that persuaded Exxon Mobil Corp. to return some of its licenses in the country. 3Legs gained 1.2 percent to 41 pence as of 1:27 p.m. in London.
3Legs also appointed John Blair, formerly of Denver-based Knowledge Reservoir LLC, as its new exploration manager.
Drilling has started on its fifth well in the Baltic Basin and the company plans two or more next year.
“While the company’s focus remains firmly on its western Baltic Basin concessions, the board wishes to retain the flexibility to investigate new opportunities which have the potential to add value to the company’s existing portfolio,” it said in today’s statement.
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