(Alliance News) - Attis Oil & Gas Ltd said Wednesday it has issued a notice of default to its joint venture partner APEG Palo Pinto LP after it failed to meet its financial obligations.
Attis Oil and Gas is a 50% joint venture owner with APEG of ATAP Oil & Gas LLC, the owner of the Fort Worth Field in Texas.
The company said APEG has not paid its share of costs associated with the field, including 50% of the bond posted with the Texas Railroad Commission and approved work program and budget.
Due to continued failure by APEG to pay its share of the costs, the Attis issued a notice of default to APEG under the joint operating agreement in an attempt to recover a total of approximately USD250,000 of past due costs.
The company said the effect of the issue of the default notice is that Attis is entitled to 100% of the revenues from the field.
However, "a continuation of historically low natural gas prices in the US, currently at a 20 year low, have resulted in the field operating at a loss in recent months," the company noted.
Therefore, the company said it now considers disposal of its interest in the field.
Shares in Attis Oil & Gas were untraded on Wednesday in London, last quoted at 0.07 pence.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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