Sound Oil slumps as takeover collapses

4th Dec 2009 08:27

Shares in Sound Oil, which explores for oil and gas in Indonesia, re-commenced trading Friday morning after a suspension following the collapse of a possible reverse takeover - and slumped nearly 40%.Trading in the shares were suspended on October 20 when Sound said it was in discussions about the possible acquisition of a company with oil assets offshore West Africa, which would have represented a reverse takeover, but were re-admitted to trading today after the company said the discussions had been terminated.'It is unfortunate that this reverse transaction has collapsed as we committed significant time and effort to reaching a successful conclusion,' chairman Gerry Orbell said.'We now intend to pursue vigorously our Indonesian assets and develop opportunities in that area using our cash resources judiciously.'