On 3 March 2026, The Stock Exchange of Hong Kong Limited announced a disciplinary action against CHK Oil Limited (632) and a former executive director and chairman of the company. The action was taken due to issues related to certain gas and oil field leases in the United States, which accounted for approximately 40.00% of the total assets of the group in 2022. These leases were terminated after written orders were issued by a US government bureau, yet this information was not promptly reported to the board, the audit committee, or the auditors.
CHK Oil Limited continued to include the terminated leases in its consolidated financial statements for the years ended 31 December 2022 and 2023, as well as the interim results and reports for the six months ended 30 June 2023. This caused a significant overstatement of total assets by about 65.50% in 2022 and 58.10% in 2023. The situation came to the board’s attention in August 2024, leading to the publication of a corrective announcement in September 2024 that restated these results.
The former director responsible did not contest the breaches. The Stock Exchange censured CHK Oil Limited, issued a statement that the individual’s continued service could be prejudicial to investors’ interests, and also imposed a public censure on him. The Exchange further noted that the company’s actions breached the requirement for accurate, complete, and non-misleading disclosure in its published financial information.
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