AusTex is selling oil and gas assets to repay shareholders $12m

A bunch of investors in ASX-listed AusTex Oil want the company to repay them $US9.3 million ($12 million).

AusTex (ASX:AOK) has received another “Put Option” notice from a shareholder – the fourth since it went into a trading halt in mid-February.

A Put Option allows a shareholder to sell a specified amount of a security at a certain price and time. (It’s the opposite of a call option, which allows a share purchase).

To repay the options, AusTex is selling off assets.

“The company is continuing to progress discussions in relation to the sale of assets, noting that, based on expressions of interest received, the expected proceeds from asset sales should be significantly in excess of the total value of put option notices received,” AusTex said.

AusTex is embroiled in a legal dispute with preference shareholders Weider & Foreman.

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In its last quarterly, the company told shareholders pending litigation from the pair was holding up a loan facility from a local bank – consequently halting drilling.

AusTex remains suspended from trading.