(Alliance News) - Asia Pacific-focused Jadestone Energy Inc has won a legal battle with French oil major Total SA's Philippines business, it said Thursday.
Jadestone has been engaged in litigation via subsidiary Mitre Energy Ltd with Total E&P Philippines BV.
Jadestone began legal action alleging Total had breached a 2012 farm-out agreement. It claimed Total had failed to drill an exploration well on the deepwater Halcon prospect, located on the SC56 asset in the Sulu Sea.
A tribunal has found in favour of Jadestone, and has awarded it USD11.1 million in damages and legal costs of USD4.3 million.
Total remains the operator of the SC56 asset with a 75% stake, with Jadestone holding 25% via Mitra.
Jadestone Chief Executive Paul Blakeley said: "The SC56 asset is not consistent with our strategy and was inherited from the former Mitra Energy management team. It has remained in the Jadestone portfolio solely as a result of the carried well commitment, which was intended to provide a cost-free option to further test this frontier basin.
"It was important for the company and our shareholders to pursue our legal rights to a successful conclusion. With the satisfactory resolution of this matter, we can now refocus on our strategy to deliver exceptional value to shareholders, through investment in producing assets and discoveries which can be quickly developed for early cash flow."
Singapore-based Jadestone's shares were 2.6% lower on Thursday morning in London at 87.15 pence each.
By George Collard; georgecollard@alliancenews.com
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