Perth-based Westralian Gas and Power has terminated its relationship with the Pankaj Oswal-backed Oswal Resources.
In a brief statement today, WGP said the relationship that included a title transfer, share sale and purchase agreement, and joint venture shareholders agreement had ended.
No reason was given and WA Business News could not get in contact with WGP at time of publishing.
WGP said in the statement that earlier this week, it had put a proposal to Oswal as to how best to end the partnership however it received a response advising that Oswal will reply early next week.
Late last year, WGP and Oswal announced that they would form a joint venture company, Oswest Energy, that will explore for strategic energy opportunities, including coal exploration and coal seam gasification in WA.
Oswal Resources, which is owned by Mr Oswal and his wife, held 75 per cent of the JV while WGP held the balance.
When the agreement was first announced, WGP executive chairman Peter Briggs said the deal would provide the company financial stability to thoroughly explore all its leases.
Under the deal, WGP was free carried to bankable feasibility study on all its projects with Oswal to cover WGP's costs if the latter was not able to meet them.
The announcement is below:
Perth based diversified energy exploration company, Westralian Gas and Power Ltd ("WGP") advises that the relationship between it and Oswal Resources Pty Ltd ("Oswal") documented in a title transfer and share sale and purchase agreement and a Joint Venture shareholders' agreement has ended.
On 16 September 2009 WGP put a proposal to Oswal as to how best to dismantle the relationship. Oswal has today advised WGP that it is not in a position to respond to that proposal until early next week at the earliest. WGP will report further on this matter as and when relevant developments arise.
