LONDON (Alliance News) - Oilex Ltd said on Monday the Gujarat State Petroleum Corp served the company notice of an order from a High Court in India directing it "not to take any coercive steps" against Gujarat State Petroleum until September 4.
Shares in Oilex Ltd were down 32% Monday at 0.18 pence each, with a suspension in trading in the shares having been removed following the announcement.
Oilex said: "The order has been awarded on an interim basis to delay the company securing a transfer of the participating interest in the Cambay PSC held by Gujarat State Petroleum."
Oilex's legal advisors are "currently considering the matter".
According to Oilex, the order was obtained from the High Court of Gujarat on an ex parte basis - meaning the company was not afforded the opportunity to assert its position.
Oilex claims Gujarat State Petroleum remains in ongoing material breach of the joint operating agreement with the event of default remaining in place. Oilex "intends to enforce its legal and contractual rights", it said.
In May, Oilex issued an event of default notice for USD3.1 million to Gujarat State Petroleum in accordance with their joint operating agreement.
The notice was issued due to Gujarat State Petroleum's failure to pay its participating interest share of Cambay PSC expenses, Oilex said.
Managing Director Joe Salomon said: "We are confident that the company has followed the correct legal process and intends to fully enforce its rights as necessary to facilitate the successful development of the Cambay Project."