Quetzal Energy kills plan to spin out Guatemalan assets into separate company

CALGARY – Quetzal Energy Ltd. (TSXV:QEI) says it will not go ahead with a previously announced plan to spin out its Guatemalan assets into a separate publicly traded company.

The Calgary-based company says its board of directors will review several strategic alternatives to maximize shareholder value of the assets in that Central American country.

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Quetzal said in a release that it has also withdrawn its stock option plan due to a lack of shareholder support.

The junior oil and gas company says its board of directors will examine other compensation plans that will enable Quetzal to continue to attract and retain talented employees.

Its Guatemalan property is producing about 40 barrels of oil per day, which is trucked to Guatemala City and sold to users who blend the oil with refined products for use in furnaces and diesel engines.

The company also operates the Canaguaro oil play in Columbia.

Quetzal shares fell five per cent or less than a cent to nine cents apiece Wednesday on the Toronto Stock Exchange.