Energy Ministry Terminates Block VIb PSC in Georgia

Source: www.gulfoilandgas.com 4/30/2015, Location: Asia

Australia's Red Emperor Resources NL referred to its announcement April 14 and provided the following update with respect to its Georgian Project.

The Georgian Ministry of Energy has formally notified Strait Oil & Gas Limited (Strait) that the Production Sharing Contract (PSC) over Block VIb has been terminated. The Ministry cites the non-performance of obligations, specifically the requirement to drill a well in accordance with the stipulated procedure. Red Emperor notes that this obligation has been acknowledged by its Joint Venture partner, Range Resources Limited, both internally within JV correspondence as well as publicly.

The penalty to be imposed on the Contractor, Strait, is $1 million and payable immediately.

Red Emperor believes it has fulfilled its obligations with respect to Block VIb, specifically cash contributions towards the second well of a two well program, as per its Shareholder and Subscription Agreements (the Agreements). The Company continues to reserve any and all legal rights under these agreements.

This outcome does not, in any way, affect the validity of Block VIa.

Red Emperor has continued to act in good faith and endeavored to work with all parties to achieve a favorable outcome throughout its involvement in this Joint Venture. It is extremely disappointed that it finds itself in this position, but reaffirms that it has met all required obligations under the Agreements.


Nigeria >>  7/1/2022 - ADM Energy PLC, a natural resources investing company, provides an update on the legal proceedings in respect of its interest in the Barracuda oil fie...
Norway >>  7/1/2022 - Rex International Holding Limited (“Rex International Holding”, “Rex” or the “Company”, and together with its subsidiaries, the “Group”), a technology...

Norway >>  7/1/2022 - The farmin agreement with OMV (Norge) AS ("OMV"), which was first announced on May 9, 2022, has now been concluded, according to Longboat Energy, an u...
Canada >>  6/30/2022 - STORAGEVAULT CANADA INC. (“StorageVault”) is pleased to announce that, further to its May 12, 2022 news release, it has completed the acquisition of 6...

Nigeria >>  6/30/2022 - Reference is made to previous stock exchange releases by PetroNor E&P ASA (“PetroNor") regarding the acquisition of Panoro Energy ASA’s (“Panoro”) int...
United Arab Emirates >>  6/30/2022 - Tristar Group, an energy logistics company, has purchased the Shell oil products storage facility terminal in Dubai's Jebel Ali Free Zone (JAFZA), acc...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.