09/07/2009 - 14:32

GB Energy starts Protean legal action

09/07/2009 - 14:32

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West Perth-based oil and gas explorer GB Energy has launched legal action against wave energy developer Protean Power and two of its directors over an earn in agreement.

GB Energy starts Protean legal action

West Perth-based oil and gas explorer GB Energy has launched legal action against wave energy developer Protean Power and two of its directors over an earn in agreement.

GB is seeking orders from the Supreme Court to enforce a funding and subscription deed executed nearly two years ago with Protean.

Protean is currently designing and constructing a commercial prototype of a wave energy converter.

GB has so far spent $900,000 on the project and holds a 20 per cent interest in Protean. GB can then increase its interest to 50 per cent by spending an additional $1.35 million for stage two of the project.

GB said it had already contributed $750,000 on stage two.

Under the legal proceedings, GB is seeking confirmation that the agreement remains binding and an order that Graeme Kirke be appointed as director and chairman of Protean.

GB said today its directors have loaned $400,000 to the company with part of the proceeds to provide for the next $250,000 of stage two funding, as per the agreement.

GB said the funds will be deposited into court so as fulfil its funding obligations until the dispute is determined.

"GB Energy Ltd remains committed to the Protean Wave Energy Technology and intends to defend their shareholder's rights under the Deed," the company said.

"A tentative trial date has been set for the middle of August 2009."

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