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Wednesday, 07 January, 2009, 22:20 GMT | more >>

Insider trading probe at QGC



By Upstream staff 

Australia’s coalbed methane producer Queensland Gas Company said that a former company secretary has been the subject of an investigation by the Australian Securities and Investments Commission (ASIC) for alleged insider trading.

Mukesh Panchal’s position as QGC’s company secretary was terminated on 28 February, one day after QGC’s managing director Richard Cottee heard for the first time of Panchal’s involvement in an ASIC probe into the alleged purchase of QGC shares between 15 January and 1 February.

Cottee briefed the board of QGC on the 29 February and the London-based chief executive of BG Group, Frank Chapman, was also briefed on the matter during late February.

The alliance between the two companies to invest A$8 billion (US$7.4 billion) in creating an LNG project in Queensland using QGC’s Surat basin coalbed methane gas as feed-stock, is progressing as planned. On Friday, QGC received A$664 million from BG in recognition of completion of part of the BG transaction.

“I can confirm that based on the documents in the District Court, Panchal is alleged to have purchased more than 400,000 shares in QGC between 15 January and 1 February,” Cottee said in a statement today.

QGC went into a trading halt on 1 February when the shares were A$3.42. The alliance with BG Group was announced first in London on the evening of 1 February (Brisbane time). The share price rose above A$4 on 4 February and had traded as high as A$4.67.

Cottee said he was not aware of anyone apart from Panchal being under investigation.

Panchal joined QGC in July 2006, he was previously employed in a senior role at an energy company in New Zealand.


Monday, 14 April, 2008, 03:17 GMT  | last updated: Monday, 14 April, 2008, 03:22 GMT

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