Australia's ADX Energy has obtained approval to transfer its interest in the Chorbane permit, in Tunisia, to London-listed Gulfsands Petroleum, however the latter is now refusing to make a previously agreed settlement payment.
ADX said the transfer of its interest in the permit to Gulfsands was approved by Tunisian authorities, however it added that the UK company was now refusing to pay the previously agreed $1.5 million payment owed under the settlement agreement.
Under the terms of the deal, Gulfsands was required to make the payment once all conditions of the settlement agreement were met, however it claims ADX did not satisfy all of the conditions of the agreement.
“Gulfsands has asserted that the transaction has completed and further that as ADX has among other things not supplied all data and information to it in accordance with the settlement agreement, it will not make be making the payment under the settlement agreement,” ADX said in Friday's statement.
“ADX believes that completion has not occurred and cannot occur until the final consideration payment is made. ADX is extremely surprised by this communication and awaits particulars as it is firmly of the belief that it has fully and timely discharged all of its obligations under the settlement agreement.”
It added that it would now investigate Gulfsands assertions and advise the market of what action it plans to take “in due course”.
The agreement was part of a wider deal which saw ADX take full control of the Kerkouane permit last year after gaining Gulfsands stake.