(Alliance News) - Shares rose in Oilex Ltd on Tuesday as it announced a court order for the termination of arbitration proceedings by Gujarat State Petroleum Corp regarding the Cambay production sharing contract in India.
Shares in the oil & gas developer were 22% higher at 0.216 pence on Tuesday.
In early September, Oilex announced it had reached a settlement with GSPC to resolve the Cambay dispute.
Following the settlement, the event of default and withdrawal declared by Oilex has been withdrawn and GSPC has terminated arbitration proceedings lodged with the Singapore International Arbitration Centre.
In addition, GSPC has also undertaken to remove the stay order granted in the High Court of Gujarat and start a sales process for its 55% participating interest in Cambay.
"We are pleased to observe that all parties are implementing the recently announced settlement on a timely basis. The settlement is an important step forward to recommencing an active work programme at Cambay as part of our broader strategic approach now also encompassing the Cooper Basin and UKCS," said Managing Director Joe Salomon.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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