Oilex Ltd Update on High Court Decision on Cambay Stay Order (5103H)
November 15 2018 - 7:08AM
UK Regulatory
TIDMOEX
RNS Number : 5103H
Oilex Ltd
15 November 2018
AIM Announcement
15 November 2018
ASX: OEX
AIM: OEX
Update on High Court Decision on Cambay Stay Order
Oilex Ltd (Oilex or the Company) advises that the registry of
the High Court of Gujarat, India (the Court) has now closed for
today. Pursuant to the order issued by the Court as announced by
the Company on 5 November 2018, Gujarat State Petroleum Corporation
(GSPC) was required to submit 30 crore rupees with the Court by
today.
Although the Company was not able to formally confirm GSPC's
compliance, it believes that GSPC may have submitted the required
funds in compliance of the order with the Court. The Company will
update the market upon clarification with the registry of the
Court.
Background
By way of background, on 30 July 2018 Oilex announced that it
had formally requested the Government of India (GoI) to transfer
GSPC's participating interest (PI) in the Cambay PSC to the
Company. The request was made strictly in accordance with the JOA
and follows GSPC's failure to remedy the Event of Default Notice
(EoD Notice) within the required 60-day period. The EoD Notice was
a result of GSPC's ongoing failure to pay its PI share of Cambay
PSC expenses.
GSPC subsequently served an ex-parte interim stay order (Order)
from the Court directing the Company not to take any coercive steps
against GSPC. The Order was awarded on an interim basis to delay
the Company transferring GSPC's PI in the Cambay PSC.
On 5 November 2018, the Company announced that the Court had
decided on all applications pending regarding the Order obtained by
GSPC. In summary, the Court issued and passed judgement further
delaying the implementation of the EoD Notice dated 29 May 2018 and
also Notice of Withdrawal of Participating Interest (NoW) dated 29
July 2018, subject to the fulfilment of all of the following
conditions:
a) GSPC is directed to deposit a sum of Rs.8.25 crores rupees
(US$1.1 million approx) before the Court in the name Registrar of
the High Court on or before by 15 November 2015(#) ;
b) GSPC is directed to submit a bank guarantee for Rs.21.75
crores rupees (US$3.0 million approx) in the name of Registrar of
High Court of Gujarat latest by 15 November 2015(#) ; and
c) GSPC shall commence arbitration proceedings on or before 1 December 2018.
Should GSPC meet the abovementioned conditions, the Court has
directed that these conditions remain valid for the duration of the
arbitration and that the Cambay Joint Operating Agreement (JOA)
will continue to operate during this same period. Accordingly, in
addition to submitting in aggregate, 30 crores rupees to the Court,
GSPC will also be required to pay its current and ongoing 55% share
of the Cambay Joint Venture expenditure while seeking to have the
EoD Notice rescinded through the arbitration proceedings.
In the event GSPC does not adhere to all of the abovementioned
conditions, the stay order will no longer prevent the Company from
seeking to implement all of its rights under the JOA.
For and on behalf of Oilex Ltd
Joe Salomon
Managing Director
(#) We are advised by our Indian legal counsel that the
applicable date should read 2018
For further information, please contact:
Investor AIM Broker AIM Nominated Media Enquires Media Enquiries
Enquiries Cornhill Capital Adviser (UK) (Aus)
Oilex Ltd Limited Strand Hanson Vigo Communications Citadel-MAGNUS
Joe Salomon Broker Limited Public Relations Michael Weir
Managing Daniel Gee Nominated Adviser Patrick Email:
Director Email: Rory Murphy/Ritchie d'Ancona/Chris mweir@citadelmagnus.
Email: danielg@cornhillcapital. Balmer McMahon com
oilex@oilex.com.au com Email: Email: Tel: +618
Tel: +61 oilex@strandhanson.c patrick.dancona@vigo 6160 4900
8 9485 3200 Tel: +44 20 o.uk comms.com Australia
Australia 3700 2500 Tel: +44 20 chris.mcmahon@vigoco
UK 7409 3494 mms.com
UK Tel:+ 44 20 7390
0230
UK
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END
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