Less Ads, More Data, More Tools Register for FREE

Pin to quick picksOEX.L Share News (OEX)

  • There is currently no data for OEX

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Oilex Vows Court Defense Against Major Shareholder Zeta Resources (ALLISS)

Wed, 02nd Dec 2015 10:43

LONDON (Alliance News) - Oilex Ltd on Wednesday confirmed it intends to defend itself against claims made by one of its shareholders, Australian-listed Zeta Resources Ltd, but said it is still exploring options for a "commercial resolution" to resolve the dispute.

Oilex shares were down 2.4% to 0.610 pence per share on Wednesday morning, having jumped initially to 0.70p.

Back in July, Oilex launched a capital funding programme worth AUD30.0 million, which included a AUD9.4 million deferred settlement from Zeta Resources.

Currently, Zeta holds a 10.3% stake in Oilex, which would have risen to 19.6%.

That capital funding programme was conducted to allow Oilex to carry out a work programme in India, complete minimum work commitments in Western Australia, and for working capital purposes.

However, in November, Oilex said that Zeta had failed to settle the subscription for the deferred settlement portion of its placement and convertible note and that Zeta had launched legal action against Oilex.

Zeta was expected by Oilex to pay for over 124.0 million shares in the company at a price of AUD0.0418 per share before the end of November 13, the same date Oilex was informed Zeta was pursuing legal proceedings against the company.

In addition to those shares, Zeta agreed to subscribe for AUD4.2 million of 20-year, zero-coupon unsecured convertible loan notes, convertible into Oilex shares at Zeta's option at any time.

On November 12, Zeta claimed the funding agreement it signed with Oilex was "void", meaning it should not have to pay the amount claimed by Oilex, and in turn said Oilex should pay Zeta "damages and compensation", including interest and costs.

Oilex initially said the claims made by Zeta were "without merit".

Zeta said it claimed Oilex had either engaged in "misleading or deceptive conduct" or conduct that was likely to be misleading or deceptive, contravening Australian exchange rules.

Zeta said Oilex had failed to disclose that its Indian joint venture partner on the Cambay field, Gujurat State Petroleum Corp Ltd, had "for some time" been in default in paying cash calls due under the joint venture agreement, Zeta claimed.

On November 11, Oilex said it was in talks with its Indian partner about the cash calls the Indian company owed, which amounted to USD7.7 million at the end of October, increasing from USD1.6 million at the end of June.

The Cambay field is one of Oilex's primary assets, with Oilex describing it as "the most significant component of the company's portfolio".

At that time, Zeta said: "Had Zeta known of the true position at the time of its decisions to invest were made, it would have had a different view as to the prospects of Oilex, and it would not have made its investments in Oilex. Zeta was not informed of the true position relating to GSPC at any time before it entered into the funding agreements.

On Wednesday, Oilex said it has notified the Federal Court of Australia and Zeta Resources that it intends to defend itself against the legal proceedings filed by Zeta, and will claim that Zeta has failed to settle the subscription within a timeframe that was agreed between the two companies.

That defence and cross-claim will be filed by December 16.

However, Oilex said it is still exploring options for a "commercial resolution" to the dispute, but this looks set to draw out the court case.

Zeta and Oilex have both agreed that, apart from Oilex filing a defence and counter-claim, that neither company will take "further steps" in the legal proceedings until the start of March 2016.

Zeta last made an announcement to the Australian exchange on November 25, when it said it "remains fully committed" to the legal proceedings.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Copyright 2015 Alliance News Limited. All Rights Reserved.

More News
1 Apr 2021 12:02

IN BRIEF: Oilex gets approval for 55% interest in Cambay purchase

IN BRIEF: Oilex gets approval for 55% interest in Cambay purchase

Read more
1 Apr 2021 10:34

AIM WINNERS & LOSERS: Oilex hails milestone with Cambay resolution

AIM WINNERS & LOSERS: Oilex hails milestone with Cambay resolution

Read more
15 Mar 2021 10:15

IN BRIEF: Oilex swings to interim profit; restructures Series D loan

IN BRIEF: Oilex swings to interim profit; restructures Series D loan

Read more
15 Mar 2021 09:21

Oilex extends repayment on series D facility, raises another £0.35m

(Sharecast News) - Oilex has entered into an amendment agreement to vary the repayment obligations for its series D loan funding facility of £0.23m, it announced on Monday.

Read more
15 Feb 2021 11:10

AIM WINNERS & LOSERS: Live Co Falls After Two Board Departures

AIM WINNERS & LOSERS: Live Co Falls After Two Board Departures

Read more
15 Feb 2021 09:59

Oilex In Talks To Buy Partner's Cambay Stake; Trading Halted In Sydney

Oilex In Talks To Buy Partner's Cambay Stake; Trading Halted In Sydney

Read more
1 Feb 2021 11:16

TRADING UPDATES: DX Group And BATM Expect To Beat Market Forecasts

TRADING UPDATES: DX Group And BATM Expect To Beat Market Forecasts

Read more
24 Dec 2020 12:23

Oilex extends loan repayment date to March

(Sharecast News) - Oilex has entered into an amendment agreement to vary the repayment obligations for its series C loan of £0.125m, it announced on Thursday.

Read more
24 Dec 2020 10:28

Oilex Further Extends GBP125,000 Series C Loan Repayment Date

Oilex Further Extends GBP125,000 Series C Loan Repayment Date

Read more
17 Dec 2020 16:29

UK EXECUTIVE CHANGE SUMMARY: Kingspan Insulation Boards MD To Depart

UK EXECUTIVE CHANGE SUMMARY: Kingspan Insulation Boards MD To Depart

Read more
14 Dec 2020 20:40

IN BRIEF: Oilex To Acquire Doyle-Peel UK Licence From Burgate

IN BRIEF: Oilex To Acquire Doyle-Peel UK Licence From Burgate

Read more
9 Dec 2020 16:00

UK Shareholder Meetings Calendar - Next 7 Days

UK Shareholder Meetings Calendar - Next 7 Days

Read more
2 Nov 2020 16:25

IN BRIEF: Oilex Annual Loss Widens, Takes Cambay Impairment

IN BRIEF: Oilex Annual Loss Widens, Takes Cambay Impairment

Read more
30 Oct 2020 19:07

UK TRADING UPDATE SUMMARY: Minds + Machines CEO And CFO Leave Posts

UK TRADING UPDATE SUMMARY: Minds + Machines CEO And CFO Leave Posts

Read more
15 Oct 2020 12:27

Oilex Gets Cooper-Eromanga Sale Over Line; Wants In On West Kampar

Oilex Gets Cooper-Eromanga Sale Over Line; Wants In On West Kampar

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.