Cash dispute: hits Black Rock's Colombian joint venture
Black Rock and Kappa in cash row
Black Rock Oil & Gas is in dispute with Colombian joint venture partner Kappa Resources over cash calls.
The company said it had previously been advised by Kappa that it would start drilling two further exploration wells at the Las Quinchas Block in Colombia before the end of the year. This was then delayed, with Kappa stating recently that rigs are being sought for the first quarter of 2007.
Black Rock stated it had subsequently received a number of cash calls from Kappa for various activities, only some of which it had fully approved.
After having paid $1 million for the approved items, Black Rock challenged some of the remaining cash calls which it felt contradicted the terms of their agreement, particularly those relating to expenditure not due to be carried out until 2007.
In response, Kappa issued a default notice to Black Rock. The latter then issued a rebuttal of the disputed cash calls and the validity
of the default notice.
Black Rock said it has now commenced proceedings in Colombia to protect its assets. The company added that Kappa had not yet responded to any of its requests to meet.