Empire Oil & Gas has conceded defeat in its bid to stave off efforts by major shareholder ERM Power to overthrow its board, saying it now believes ERM's proposal is the best way forward for the company.
Empire Oil & Gas says a move by its biggest shareholder ERM Power to replace Empire directors with its own representatives has compromised its relationships with contractors and caused disruption to the business.
ERM Power says it will seek to recover legal costs paid by Empire Oil & Gas for its directors' personal legal actions against shareholders as a showdown between the two companies looms at a general meeting next month.
The war of words between Empire Oil & Gas and its joint venture partner ERM Power continues, with Empire directors warning shareholders that ERM lacks the experience needed to guide an oil and gas company.
Empire Oil & Gas is facing a board upheaval with its biggest shareholder and joint venture partner ERM Power calling a meeting of shareholders to consider removing Empire's executive chairman and two other directors.