One of Western Australia’s more colourful public companies, Tony Barlow, is back from voluntary administration; but rather than continuing to sell up-market menswear it is now exploring for oil and gas in Texas.
Tony Barlow, founded by the company’s namesake and former chairman, listed on the stock exchange almost 20 years ago with plans to become the biggest menswear retailer in Australia
However, in the face of lagging sales and a falling share price, it was eventually placed in voluntary administration in 2003 as part of a plan designed to relist the struggling company.
At the time, it acquired a 51 per cent stake in the separate business - Tony Barlow Formal Menswear Hire - part-owned by the founder’s brother, Derek Barlow.
However, after emerging from voluntary administration late last year and as part of a new focus, the company has determined that the clothing business is not for it.
It has agreed to sell its holding in Allendale, the registered owner of Tony Barlow Formal Menswear Hire, back to Derek Barlow for $90,000 (a loss).
It will change its name to Aurora Oil and Gas and has proposed Tony Barlow and John Kenny resign as directors.
With a consortium of two other Australian oil and gas companies, Sun Resources and Victoria Petroleum, Tony Barlow has purchased a 37.5 per cent stake in the Flour Bluff, a gas redevelopment in Texas.
The company will pay $2.5 million for its 12.5 per cent working interest.
It has also attracted a board with a strong background in oil and gas and public resource companies.
Jonathon Stewart, a former managing director of UK and Russian oil and gas producer, Sibir Energy, and former executive chairman of property funds management company Glenmont, will take up the executive chairman’s position.
Former director of Hardman resources Graham Dowland, Blakiston and Crabb partner Micheal Blakiston and the founder of Canadian oil and gas company Petromet Resources, Gren Shoch, will also join the board.
Platinum Australia chairman Peter Allchurch will play a consulting role through a private company.
Mr Stewart said the company was earning about $500,000 per year from current gas production and a $4 million drilling program of three new wells, with work over four wells over the next six months planned.
He said the company would issue a prospectus in March in which it would propose a five for one share consolidation and raise a minimum of $400,000.
