Oilex (LON:OEX, ASX:OEX) has told investors that as it continues to discussions with Zeta Resources it has been agreed that further legal steps will be on hold until March 1 2016.
The company this morning confirmed that it had now provided notice to the court of its intention to defend the legal proceeding brought by Zeta, a shareholder that had agreed to fund the company’s work at the Cambay field.
It also said that a timetable had been agreed with Zeta, which will see Oilex file and serve its defence and cross claim by December 16, but, in the meantime the two parties are in talks.
Oilex, in a statement, said: “The parties are presently engaged in discussions to explore options for a commercial resolution of the dispute, the subject of the legal proceedings.
“The parties have further agreed with the approval of the Court, not to take further steps in the legal proceedings until 1 March 2016 (other than filing and serving the defence and cross claim).”
Last month, Zeta released a statement informing its shareholders that it had commenced proceedings in the Federal Court of Australia. It claims that that Oilex failed to disclose that its Indian joint venture partner had been in default in paying cash calls.
The Australian investor claims it would not have agreed to make the investments in Oilex had it known the position of the partner. In its legal proceedings Zeta seeks an order for the funding agreement to be void, and it said it seeks damages and compensation from Oilex.