DIRECTORS of Bowleven have said they will not conduct a fire sale of the oil and gas firm after launching a strategic review which they have said may result in the disposal of the business.

On Friday rebel investor Crown Ocean Capital criticised the decision to launch the review insisting the timing was not right.

The investment firm said then: “We will not support any “fire-sale” transaction and doubt our fellow shareholders will approve of a rushed approach.”

Crown Ocean led a campaign for change which resulted in five directors getting voted off Edinburgh-based Bowleven’s board and two new ones appointed at a general meeting earlier this month. A resolution calling for Bowleven’s chairman Billy Allan to be voted off the board was defeated.

Bowleven said yesterday the decision to launch the review had been unanimously approved by the board and was taken in the light of the changes made to its membership.

Cameroon-focused Bowleven added: “The Board … has not pre-determined the outcome of the strategic review and, owing to the Company’s secure financial position, does not require or intend to undertake a ‘fire sale’ transaction.”

The review will consider all options open to the firm, including Crown Ocean’s suggestion it should be turned into a holding company with excess cash returned to shareholders.

Bowleven added: “The Board is fully aware of its regulatory obligations and fiduciary duties and has complied with these obligations in full to date.”

Crown Ocean, which has a 23 per cent stake in Bowleven, has requisitioned a second general meeting. It wants Mr Allan voted off the board and two more directors appointed.