Peak O&G Terminates Deal with Cadco Over Cadlao Project in Palawan Basin

Australia's Peak Oil and Gas Limited (Peak) reported Thursday that on July 28, the company announced that it had executed a conditional settlement deed (Deed) with Cadlao Development Company Limited (Cadco) (formerly Blade Petroleum Limited) in relation to the Company's dispute with Cadco regarding the Cadlao Farmin Agreement (Cadlao FIA) for Service Contract (SC) 6, located in the northwest Palawan Basin in the Philippines, which contains the Cadlao Redevelopment Project.

The Deed requires Peak, inter alia, to:

  1. transfer its interests in Peak Royalties Limited which holds certain overriding royalty rights pertaining to SC6 Cadlao
  2. terminate the Cadlao FIA between Peak and Cadco which effectively releases any claim Peak has to direct working interests in SC6 Cadlao (not including the Peak's interest in VenturOil); and
  3. terminate the arbitration process (Arbitration) in respect to its dispute with Cadco regarding the Cadlao FIA

In return, Cadco would pay Peak an amount of approximately $6.3 million (AUD 6.7 million).

The parties agreed that settlement would take place Aug. 6. However Cadco has failed to remit the agreed amount by this date.

Whilst Cadco has signalled it wishes to agree a new settlement date, Cadco is unwilling to provide a fixed date which Peak is able to rely upon. Accordingly, the Deed is now terminated and the parties will resume their original commercial and legal positions immediately prior to the execution of the Deed. Arbitration will be immediately recommenced.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Manager, Probabilistic Risk Analysis Job
Expertise: Business Development|Research & Development|Technical Manager
Location: Minneapolis, MN
Project Controls Specialist
Expertise: Project Management
Location: Minneapolis
Business Development Manager
Expertise: Business Development|Construction Manager|Sales
Location: West Sacramento, CA
search for more jobs

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours