The securities regulator is going after failed oil prospector Antares Energy and its former chief executive James Cruickshank after they told investors about offers for its oil and gas interests in western Texas that never materialised.
The Australian-listed Antares, and Dallas-based Cruickshank, were hit Thursday with an enforcement action by the Australian and Securities Investments Commission over announcements made in September 2015 about the proposed acquisitions of its Big Star and Northern Star projects by an unidentified “private equity buyer”.
ASIC claims in its Federal Court action that Antares did not disclose to the Australian Stock Exchange before the announcements that the identity of the private equity purchaser of its assets was Wade Energy.
Antares also failed to disclose that it had not independently verified Wade’s capacity to make the purchases and that Wade had not been given the necessary financial approvals to complete the Big Star purchase, according to the complaint.
ASIC claims Antares and Cruickshank breached their continuous disclosure obligations to shareholders under the Corporations Act. Cruickshank also failed to discharge his director’s duties to Antares with care and diligence, the regulator claims.
The commission is asking for financial penalties and orders banning Cruickshank from managing another corporation.
Antares announced the US$149 million sale of its Northern Star asset on September 7, 2015. Three days later the company announced the sale of Big Star for US$105 million.
On September 15, 2015 ASX suspended Antares’ shares from official quotation. That suspension remains in place.
Antares never made the proposed sales to Wade Energy and the company went into voluntary administration in April 2016.