8th Jun 2016 07:38
LONDON (Alliance News) - Oilex Ltd on Wednesday said it has reached an agreement to end legal proceedings with shareholder Zeta Resources Ltd, meaning neither company will pursue claims made against one another.
In a statement, Oilex said it agreed to make a payment to Zeta on account of costs of the litigation of AUD490,000. In reaching the settlement, Oilex, listed on London's AIM and in Australia, said it took into account the "significant costs and inherent uncertainty" of litigation.
"Reaching this settlement means Oilex can focus fully on advancing its operations, which is in the best interests of all shareholders. Oilex looks forward to progressing the Cambay joint venture and the other assets in the Oilex portfolio and will keep shareholders informed as matters progress," Joe Salomon, who became managing director of Oilex in March, said in a statement.
Shares in Oilex were up 20% at 0.510 pence Wednesday morning in London.
Zeta had in November 2015 alleged that Oilex "failed to disclose material information" before Zeta's initial investment in the company, which was announced in July of that year. Oilex filed its defence and counterclaim in December.
Zeta increased its stake in Oilex to 10.3% in the capital raising, which was conducted to allow Oilex to carry out a work programme in India and to complete minimum work commitments in Western Australia, but according to Oilex's March 2016 interim report for the six months ended December 31 "defaulted on its deferred funding commitment of AUD9.4 million and commenced legal action against the company".
By Samuel Agini; [email protected]; @samuelagini
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