Australia's Tap Oil Limited provided Tuesday the following update on its commercial relations with Chatchai Yenbamroong and his Northern Gulf companies.
Since January, Yenbamroong and his Bermudan company, Northern Gulf Petroleum Holdings Ltd (NGPH), have increased their voting power in Tap from approximately 6 percent to 19.98 percent of Tap’s total issued capital through various on-market trades.
Yenbamroong has advised Tap of his intention to call a general meeting of Tap shareholders to consider his proposal to replace all but one of Tap’s existing directors with his own nominees.
Northern Gulf Default on Repayment of Tap Carry
Northern Gulf Petroleum Pte. Ltd. (NGP), a Singaporean company that is a subsidiary of NGPH and controlled by Yenbamroong, holds a 10 percent interest in the G1/48 Concession and the Manora Oil Development. As previously disclosed, under the terms relating to Tap’s acquisition of its 30 percent interest in the G1/48 Concession and the Manora Oil Development from NGPH, NGP agreed to repay $10 million to Tap out of NGP’s share of production from that project. This is an ongoing repayment obligation as and when proceeds are received from each oil lifting.
After repaying approximately $1.03 million from proceeds of oil liftings to date, NGP has recently ceased making any further repayments to Tap. On March 30, Tap gave notice to each of NGP and NGPH of the failure to repay $578,862 to Tap by way of this carry. The defaulted amounts remain outstanding and are accruing interest. Further amounts
Tap considers it has made all payments due to the Northern Gulf entities as and when they are due and payable. However Tap has now reserved all of its rights in relation to this default.
$27 Million Northern Gulf Default on Manora Costs Remains Unpaid
On March 20 the Operator of the G1/48 Concession and the Manora Oil Development (Mubadala Petroleum) gave notice to NGP that it is in default under the terms of the G1/48 Joint Operating Agreement.
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