Oilex Ltd JPDA 06-103 Joint Venture (1767N)
May 14 2015 - 5:16AM
UK Regulatory
TIDMOEX
RNS Number : 1767N
Oilex Ltd
14 May 2015
ASX Announcement
14 May 2015
ASX: OEX
AIM: OEX
JPDA 06-103 Joint Venture
Oilex Ltd ("Oilex"), in its capacity as Operator, on behalf of
the Joint Venture Participants in the Joint Petroleum Development
Area ("JPDA") 06-103 Production Sharing Contract ("PSC"), has
received a Notice of Intent to Terminate the PSC ("Notice") from
the Autoridade Nacional do Petroleo ("ANP"). The Notice follows on
from the recent rejection by the ANP of the Joint Venture Request
to Terminate the PSC by mutual agreement, in good standing and
without penalty ("Request to Terminate").
The Notice asserts a monetary claim against the Joint Venture
for payment of the estimated cost of exploration activities not
carried out in 2013 and certain local content obligations set out
in the PSC. The total amount sought to be recovered by the ANP in
the Notice is approximately USD17M (Oilex share USD1.7M). The
Company has not provided for a monetary settlement in its accounts
and given the significant overpayment in the work programme would
not anticipate making such a provision.
The Joint Venture has previously requested credit for excess
expenditure on the approved work program in the amount of circa
USD56M and this issue remains unresolved. The Notice does not
include any reference to, nor allowance for, credit for excess
monies which have been spent by the Joint Venture during the PSC
term. Oilex considers such excess expenditure should be included as
part of any financial assessment incorporated in the termination
process.
The ANP has requested the Joint Venture submit a written
response to the Notice by 12 June 2015. In accordance with this
request, the Operator, and the Joint Venture, will review the
Notice and deliver a formal response within the specified
period.
The PSC remains in formal suspension until 15 July 2015.
Background
The Request to Terminate was made due to Joint Venture concerns
as to the security of PSC tenure as a result of separate unilateral
rights to terminate the Certain Maritime Arrangements in the Timor
Sea ("CMATS") arising in 2013 in favour of both the Government of
Timor Leste and the Government of Australia and formal arbitration
proceedings being initiated by the Timor Leste Government against
the Government of Australia to have CMATS declared void ab
initio.
These matters remain unresolved at present.
The Joint Venture Participants in JPDA 06-103 are:
Oilex (JPDA 06-103) Ltd (Operator) 10.0%
------------------------------------- -------
Japan Energy E&P JPDA Pty
Ltd 15.0%
------------------------------------- -------
GSPC (JPDA) Limited 20.0%
------------------------------------- -------
Videocon JPDA 06-103 Limited 20.0%
------------------------------------- -------
Bharat PetroResources JPDA
Ltd 20.0%
------------------------------------- -------
Pan Pacific Petroleum (JPDA
06-103) Pty Ltd 15.0%
------------------------------------- -------
For and on behalf of Oilex Ltd
Chris Bath
Chief Financial Officer
For further information, please contact the company or its
advisors listed below:
PAC Partners Strand Hanson Vigo Communications
Pty Ltd Westhouse Securities Limited Public Relations
Australian Broker Limited Nominated Adviser UK
Andrew Shearer AIM Broker Rory Murphy /Ritchie Patrick d'Ancona
Email: Robert Finlay / Alastair Balmer / Chris McMahon
ashearer@pacpartners.com.au Stratton Email: Email:
Tel: +61 3 8633 Email: oilex@strandhanson.co.uk patrick.dancona@vigocomms.c
9862 alastair.stratton@westhousese Tel: +44 20 7409 om
Australia curities.com 3494 chris.mcmahon@vigocomms.com
Tel: +44 20 7601 UK Tel: +44 20 7016
6100 9570
UK UK
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This information is provided by RNS
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