(Alliance News) - Shares in Oilex Ltd dropped on Monday after it noted that the closing date for bids for Gujarat State Petroleum Corp's 55% interest in the Cambay production sharing contract in India was extended to November 30 from November 11.
Shares in the Perth, Australia-based oil & gas company were 15% lower at 0.205 pence on Monday in London.
In early September, GSPC agreed "to use its best endeavours to complete the sale process within 90 days from commencement, which is anticipated to occur on or about September 24."
In addition, an event of default and event of withdrawal declared by Oilex, in regards to the Cambay field agreement has been withdrawn.
The event of default notice was issued back in May 2018 and was for the equivalent of USD3.1 million and related to GSPC's failure to pay its participating interest in Cambay expenses. When this was not paid, Oilex then requested the transfer of GSPC's interest in Cambay to Oilex.
This dispute went through the courts and in November 2018 GSPC was granted a stay order to delay the event of a default notice. As part of the agreement, GSPC was required to commence arbitration proceedings.
The arbitration proceedings have also been terminated.
Oilex still holds a right of refusal to GSPC's 55% interest in Cambay.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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