Oilex Ltd High Court Extension Application Dismissed (4546H)

TIDMOEX

RNS Number : 4546H

Oilex Ltd

15 November 2018

ASX Announcement

15 November 2018

ASX: OEX

AIM: OEX

High Court Extension Application Dismissed

Oilex Ltd (Oilex or the Company) advises that the application by Gujarat State Petroleum Corporation (GSPC) to the High Court of Gujarat, India (the Court) seeking an extension of time has been dismissed. On 14 November 2018, the Company announced that GSPC was seeking a further 15-day extension to 30 November 2018 to clarify the amount GSPC is required to submit to the Court. Following today's hearing, the Court has not granted an extension of time to comply with the conditions of the previous Court order as announced by the Company on 5 November 2018.

Background

By way of background, on 30 July 2018 Oilex announced that it issued Notice of Withdrawal of Participating Interest (NoW) and 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 Joint Operating Agreement and follows GSPC's failure to remedy the Event of Default (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 Order from the Court directing the Company not to take any coercive steps against GSPC. The GSPC Order was awarded on an interim basis to delay the Company transferring GSPC's PI in the Cambay PSC. As announced by the Company on 5 November 2018, the Court issued and passed judgement on 1 November 2018 further delaying the implementation of the EoD and NoW 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. 

(#) We are advised by our Indian legal counsel that the applicable date should read 2018

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

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 
 [e-mail]      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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November 15, 2018 02:51 ET (07:51 GMT)