Oilex Ltd Termination of JPDA Arbitration Proceedings (5038V)
August 07 2020 - 4:32AM
UK Regulatory
TIDMOEX
RNS Number : 5038V
Oilex Ltd
07 August 2020
ASX-RNS Announcement
7 August 2020
ASX: OEX
AIM: OEX
T ermination of JPDA Arbitration Proceedings
Oilex Ltd ("Oilex or the Company"), in its capacity as Operator,
on behalf of the Joint Venture Participants in Joint Petroleum
Development Area ("JPDA") 06-103 Production Sharing Contract
("PSC") in East Timor is pleased to announce it has executed a Deed
of Settlement and Release (Deed) with the Autoridade Nacional Do
Petroleo E Minerais ("ANPM") to terminate the ongoing arbitration
proceedings arising from the termination of the PSC by the ANPM in
2015 and settle all claims and counterclaims between the
parties.
The execution of the Deed sees an amicable conclusion to the
arbitration proceedings, as announced in October 2018, where Oilex
and its joint venture partners in the PSC were subject to a penalty
claim of US$17 million (plus interest) on a joint and several
basis. Oilex is the Operator of the PSC on behalf of the joint
venture.
Under the terms of the Deed, Oilex has committed to a settlement
of US$800,000 payable in the 2021 and 2022 financial years. The
settlement was fully provided in the Company's annual financial
statements to 30 June 2019. In addition, the Company has entered
into an unsecured loan facility agreement with two of its joint
venture partners which further provides the Company with the
option, at its sole discretion, to extend the settlement payments
into the 2023-24 financial year. Please see below for further
detail on the facility.
Managing Director Mr Joe Salomon said that:
"This is an excellent outcome for all parties involved who have
worked diligently over a prolonged period to secure this sensible
and amicable outcome. Furthermore, the repayment schedule which is
deferred for a significant period, is consistent with the lifting
of the escrow period on the shares anticipated to be received from
the sale of our Cooper Basin assets to Armour Energy.
The Company wishes the ANPM the best moving forward and Oilex
can now ensure its attentions are focussed on optimising current
opportunities. "
For and on behalf of Oilex Ltd
Joe Salomon
Managing Director
For further information, please contact:
Investor Enquires AIM Broker AIM Nominated Media Enquires
Oilex Ltd Novum Securities Adviser (UK)
Joe Salomon B roker Strand Hanson Vigo Communications
Managing Director Colin Rowbury Limited Public Relations
Email: oilex@oilex.com.au Email: Nominated Adviser Patrick d'Ancona/Chris
Tel: +61 8 9485 crowbury@novumsecurities.co Rory Murphy/Ritchie McMahon
3200 m Balmer Email:
Australia Tel: +44 20 7399 Email: patrick.dancona@vigocomms.c
9427 oilex@strandhanson.co.uk om
UK Tel: +44 20 7409 chris.mcmahon@vigocomms.com
3494 Tel:+ 44 20 7390
UK 0230 UK
Loan Facility Agreement
Summary of Key Terms
Settlement Payment schedule as per Deed:
Payment Schedule * FY2020-21 US$50,000
* FY2021-22 US$500,000
* FY2022-23 US$250,000
Amended repayment schedule with JV partner loan
facility, should it be utilised:
* FY2020-21 Nil
* FY2021-22 US$250,000
* FY2022-23 US$300,000
* FY2023-24 US$250,000
Other JV Negative pledge is provided by Company in relation
Loan Terms to the creation of security without Lender consent.
Events of Default: Non payment by due date, misrepresentation,
insolvency event and if Company incurs financial
indebtedness in excess of USD5MM without Lender
consent.
Interest rate of 11% on drawn funds. No arrangement
fee.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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