Singapore-listed Mirach Energy placed on watchlist of financially ailing companies

SINGAPORE - Energy exploration and production company Mirach Energy has been placed on the Singapore Exchange's (SGX's) watchlist of companies that are struggling financially.

The firm has assets in both Cambodia and South Sumatra, Indonesia, including oil wells.

The wider industry has been badly battered by slumping crude oil prices, which are hovering at around just US$40 (S$56.50) a barrel.

In a statement to the SGX on Thursday (Dec 3), Mirach said it had been placed on the watchlist effective the same day.

"The company will endeavour to meet the requirements of Listing Rule 1314 as soon as possible to exit from the watchlist, via improved operations, albeit in a weaker minerals, oil and gas industry climate as a whole," it said in the statement.

Companies are put on the SGX watchlist if they post three straight years of pre-tax losses and have an average daily market value under $40 million over the last 120 days that the stock has been trading.