Oilex Ltd (LON:OEX) shares almost halved on their return from suspension on Monday morning after an Indian court weighed in on the spat with its joint venture partner at the Cambay Field project.
The AIM-quoted firm had asked the Indian authorities to transfer Gujarat State Petroleum Corporation’s participating interest in Cambay after GSPC failed to pay its share of expenses – more than US$3mln according to Oilex.
Oilex to continue to pursue the transfer
An order from the High Court of Gujarat has been awarded in GSPC’s favour though, preventing Oilex from taking any “coercive steps” – such as securing a transfer of the participating interest – until September 4 at the earliest.
The company said it was not afforded the chance to assert its position as part of the ruling, although it remains confident in its position and will continue to pursue the transfer.
“We are confident that the company has followed the correct legal process and intends to fully enforce its rights as necessary to facilitate the successful development of the Cambay Project,” said managing director Joe Salomon.
Shares dived 42% to 0.15p.