18/09/2008 - 13:28

Oil Basins pursues urgent hearing

18/09/2008 - 13:28

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Oil Basins Ltd has applied to the Supreme Court of Western Australia for an urgent hearing into an alleged breach of obligations by a Perth-based Australian Worldwide Energy Ltd subsidiary over licences in the Canning Basin.

Oil Basins pursues urgent hearing

Oil Basins Ltd has applied to the Supreme Court of Western Australia for an urgent hearing into an alleged breach of obligations by a Perth-based Australian Worldwide Energy Ltd subsidiary over licences in the Canning Basin.

In a statement today, Oil Basins said the action, to be heard on or before October 6, centres around Arc Energy Ltd's purported notice of default relating to a previous agreement, and its claim of force majeure over the Blina Back Reef Play joint venture.

Yesterday Oil Basins was ordered by the Federal Court to pay costs related to its failed attempt to adjourn Buru Energy Ltd's demerger from Arc when it merged with AWE.

 

Below is Oil Basin's announcement:

 

The following ASX Release provides an outline of a legal action brought this week by Oil Basins Limited (ASX code OBL or the Company) against Australian Worldwide Energy Limited's (ASX code AWE) wholly owned subsidiary Arc Energy Limited (ARQ).

The action, to be heard as a matter of urgency, on or before 6 October 2008, is brought in the Supreme Court of Western Australia and is centred around ARQ's purported Notice of Default of 2 September 2008 and Backreef Oil Limited's (BOL) and OBL's prior claim of Force Majeure - refer to the previous OBL ASX Release dated 2 September 2008 for details.

ARQ has undertaken not to act upon the purported Notice of Default dated 2 September 2008 in respect of OBL's and BOL's Farmin Agreements over the Blina Back Reef Play Joint Venture Area until this matter is heard.

Additional Clarification regarding Federal Court Costs

In addition, the ASX Release by Buru Energy Limited (ASX code BRU) dated 17 September 2008 is noted without comment as to its propriety, but our legal representatives Lavan Legal have yesterday advised OBL that due to the restrictions imposed by the Federal Court on the matter of what costs ARQ can claim due to the adjournment point, this should result in the costs claim against OBL not being substantial.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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