28th Nov 2013 10:40
LONDON (Alliance News) - Mercom Oil Sands PLC Thursday said it has reached an out-of-court settlement with Nordic Petroleum ASA over the Chard Oil Sands leases in Canada.
Mercom, which recently switched from an oil exploration and development company to an oil and gas investment company, said it has agreed to pay an undisclosed cash sum, together with the issue of 13.0 million shares in Mercom, to Nordic in full and final settlement of the dispute.
Mercom said completing the settlement means it can focus operations on its strategy to invest in opportunities in the natural resources and energy sectors, with a focus on oil and gas.
The company entered an agreement with Nordic in February to obtain a 50% interest in the Canadian site for CAD700,000 and CAD2.5 million for exploration and development at the site, but in August asked to review the agreement in light of volatile oil prices.
Both firms rejected each other settlement proposals, and it led to the legal dispute.
Mercom shares were up 16% to 0.405 pence Thursday, putting it in the top five AIM movers in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
MMO.L