(Sharecast News) - Shares in Oilex stormed higher on Monday after the company reached a resolution with the Gujarat State Petroleum Corporation (GSPC) over a dispute concerning their Cambay joint venture.
The two parties have now agreed to include GSPC's 55% participating interest in Cambay PSC in a sales process for a number of GSPC's Indian exploration and production assets.
Having issued an event of default notice back in May last year, Oilex had requested the transfer of GSPC's interest in Cambay after its partner had continually failed to pay its participating interest in the joint venture's expenses.
Following the resolution to the dispute, the AIM traded company has withdrawn an event of default for the Cambay field joint operating agreement.
Meanwhile, its joint venture partner has agreed to terminate arbitration proceedings lodged with the Singapore International Arbitration Centre and remove a stay order granted in the High Court of Gujarat.
GSPC has also committed to seek completion of the sale process within 90 days from commencement, which is anticipated to occur on or about 24 September 2019.
Mark Bolton, chief financial officer of Oilex, said: "We are pleased to support GSPC's initiatives to restructure its business and provide a path forward to potential development of Cambay with a potential new joint venture partner."
Oilex shares were up 70.77% at 0.22p at 1605 BST.
8 Apr 2016 07:25