15th Jan 2021 14:10
(Alliance News) - Star Phoenix Group Ltd on Friday said an investee has engaged with new legal advisers and has served the Georgian government with a notice of dispute as it looks to claim over USD20 million in damages.
Shares in the company more than doubled on Friday, trading at 3.28 pence each in the afternoon, after closing at 1.42p on Thursday. Earlier Friday, the stock traded as high at 4.10p, near its 52-week high of 4.50p.
Strait Oil & Gas Ltd, in which Star Phoenix has a 65% holding, entered into a production sharing contract back in March 2007 at Block VIA, Georgia.
Star Phoenix and Strait Oil have are working with new legal advisers, Enyo Law LLP, to progress an arbitration claim.
"The advisers have now formally notified the government of Georgia of the existence of an investment dispute under the energy charter treaty," Star Phoenix said.
"The notice of dispute sets out the position on SOG's unfair treatment in Georgia and how its investment in Georgia, which exceeds USD22 million, has been damaged."
Specifically, the claim argues that the termination of the production sharing contract by Georgia, before then kicking off a re-tendering in the same territory as Block VIA "was unjustified".
Back in June 2019, Star Phoenix - which was back then named Range Resources Ltd - said its legal team submitted a notice of arbitration against Georgia over the wrongful termination of the production sharing contract.
In 2017, the Georgian government announced an open international tender on Block VIA.
Star Phoenix had previously alleged the tender, and a re-licensing of the block, would breach the terms of the production sharing contract and therefore it sought legal advice.
By Eric Cunha; [email protected]
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