Uncertainty Lingers On Over Shell's Oil Reserves
Nov. 27Shell jangled investors nerves by warning it will need two more months before its reserves controversy is settled and before its historic move to unify its structure is put to shareholders. The 2005 annual meeting, due in April, is being put back to June 28.
The shares fell 1 pence to 447 1/4 pence on worries that reserve uncertainty will be prolonged. Shell says the delay is "prudent." It will give an update on February 3 with its annual profits.
Shell has revised its proven reserve figures four times since January, dropping them from 19.4 billion to 14.4 billion barrels. It is conducting a review which must go to its audit committee and to external regulators.
All these must clear the reserve figures before they can go into Shell's annual accounts the main reason for the delay. Jonathan Copus at broker Investec said: "This buys them time to put their house in order."
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