04/04/2016 - 13:26

Ausdrill sues Senex for $6.7m

04/04/2016 - 13:26

Bookmark

Save articles for future reference.

Senex Energy says it will vigorously dispute a $6.7 million compensation claim served by Ausdrill for a drilling contract terminated last year.

Ausdrill sues Senex for $6.7m
Ausdrill has served Senex with a proceeding, demanding $6.7 million as compensation for terminating a drilling contract in March last year.

Senex Energy says it will vigorously dispute a $6.7 million compensation claim served by Ausdrill for a drilling contract terminated last year.

Ausdrill subsidiary Energy Drilling Australia has served Senex with a proceeding, demanding the money as compensation for the alleged wrongful termination of the contract in March last year.

However, in a statement today Senex said the contract was terminated due to material and ongoing breaches relating to the performance of a drilling rig, and it intended to counterclaim for its losses totalling $1.2 million.

“Senex considers that this claim is without merit and, in fact EDA should compensate Senex for losses suffered as a result of the breaches,” Senex said.

“Prior to terminating the contract, Senex gave EDA a generous amount of time, above and beyond the contractual requirements, to remedy the beaches but EDA failed to do so.

“Despite numerous attempts by Senex to achieve a reasonable and amicable outcome, EDA has elected to commence the proceeding.”

Senex said it would defend the proceeding vigorously.

Shares in Senex were 8.4 per cent lower to 27 cents each, while Ausdrill shares were 1 per cent lower to 48.5 cents each at the close of trade.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options