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Oilex shares jump on Zeta Resources settlement

Published: 08:24 08 Jun 2016 BST

Hands shake, representing the agreement between Oilex and Zeta
Oilex is covering legal costs.

Oilex Ltd (LON:OEX, ASX:OEX) shares shot up over 20% in Wednesday’s early deals after it reached a settlement agreement to a legal dispute with a former funding partner.

The India focussed gas junior had been in seeking a commercial resolution with Zeta Resources before legal proceedings began between the parties.

It announced this morning that an agreement had now been reached. Each party agreed to no longer pursue claims against the other, and the legal proceedings will now be dismissed with neither party admitting liability.

Oilex has agreed to make a A$490,000 payment to Zeta for litigation costs. The company told investors that it agreeing to settle it has taken into account the significant costs and inherent uncertainty of litigation, and the substantial time commitments and distraction that the litigation presents for the board and management.

Joe Salomon, Oilex managing director, said: "Reaching this settlement means Oilex can focus fully on advancing its operations, which is in the best interests of all shareholders. 

“Oilex looks forward to progressing the Cambay Joint Venture and the other assets in the Oilex portfolio and will keep shareholders informed as matters progress."

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