The London-based player, which holds a 6.5% stake in the OML 113 block that hosts the producing oilfield, said in a statement its local subsidiary Pan Petroleum Aje had received a default notice from field operator Yinka Folawijo Petroleum over the contested cash call.

However, Panoro believes the cash call is “invalid” due to an incorrect application of the terms of a joint operating agreement and has received legal advice that it is “baseless”, dismissing the operator’s claim that it is in breach of the pact.

The subsidiary has requested that the co-venturers rescind the claim but has so far received no undertakings to this effect, with no guarantee that an agreement can be reached, and has therefore applied to the High Court in London “for interim relief in order to protect its rights under the joint operating agreement”.

“Panoro will seek to recover all losses, costs, expenses, compensation and damages in law and equity caused directly or indirectly by the joint-venture partners’ breach of their contractual and equitable obligations,” the Oslo-listed company stated .

“Panoro will also continue to take all necessary action to retain its equity participation in OML 113 and to preserve shareholder value.”

Along with the operator, the remaining partners in the licence are New Age, Energy Equity Resources and Jacka Resources.

While no figure was given for the disputed cash claim, Swedbank analyst Teodor Sveen Nilsen said it was related to historical capital expenditure, rather than opex, and may represent six to nine months of EBITDA, or around $2 million to $3 million.

The Aje field is currently producing at around 8000 barrels per day following recent repairs to the Front Puffin floating production, storage and offloading vessel, with plans to tap an additional 163 million barrels of oil equivalent, including gas.