Panoro Energy ASA (Panoro) provides an update on the OML 113 dispute with its joint venture partners. The Company, through its fully owned subsidiary, Pan Petroleum Aje Limited (PPAL), holds 6.502% participation interest in OML 113.
Further to the announcement made by Panoro on 5 December 2016 in respect of an interim injunction granted to PPAL against its joint venture partners by the English High Court, yesterday PPAL formally commenced dispute resolution proceedings with the OML 113 joint venture partners by filing a request for arbitration with the Secretariat of the International Chamber of Commerce. The dispute concerns the purported passing of resolutions by the joint venture partners with respect to a proposed new well to be drilled at Aje in OML 113, and a related cash call. While Panoro has the financial ability to fully meet the amount of this disputed cash call, the Company believes the drilling of any new well is pre-mature at this stage. Panoro is also of a firm view that the decision to incur such additional capital expenditures at Aje unambiguously requires unanimous consent of joint venture partners, which as such has not been taken in accordance with the Joint Operating Agreement procedure.
Panoro will seek to recover all losses, costs, expenses, compensation and damages in law and equity caused directly or indirectly by the joint venture partners’ breach of their contractual and equitable obligations. Panoro will also continue to take all necessary action to retain its equity participation in OML 113 and to preserve shareholder value.
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