Ndovu had difficulty last year securing payment from Petrom of the sums due under the farmout agreement, being 50% of the cost of the two well drilling program. In August 2003, Ndovu commenced proceedings against Petrom and took various other steps which resulted in the payment by early February 2004 of substantially all sums due from Petrom in respect of 2003.
Since February Petrom has paid a further $1 million but there is now an overdue sum of approximately $3.5 million outstanding to Ndovu. Ndovu is therefore pursuing the recovery of these sums through legal action and other commercial avenues open to it. Although Petrom is disputing part of the sums owed, the directors, having taken legal advice, believe that all the outstanding money is recoverable. Non-payment by Petrom of its obligations on a timely basis has created financial difficulties for Ndovu. However, Aminex believes that the steps now being taken should ensure that this will only be a temporary situation.
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