Jadestone settles dispute with Teikoku Oil

Asia Pacific-focussed oil and gas production company Jadestone Energy announced the settlement of a dispute with Teikoku Oil on Wednesday, in respect of the block 05-1 production sharing contract (PSC), offshore Vietnam.

The AIM-traded firm said Teikoku is a wholly-owned subsidiary of Japan-based oil conglomerate Inpex.

It said that, on 8 August 2016, Jadestone - through a wholly-owned affiliate - signed a definitive sale and purchase agreement with seller Teikoku for the acquisition of a 30% working interest in block 05-1.

On 22 February 2018, Teikoku delivered a notice of termination of the sale and purchase agreement.

“As noted in the company's press release of 26 February 2018, Jadestone did not accept the termination,” the board said in its statement.

“Following prolonged negotiations, the company filed a notice of arbitration in relation to the matter with the Singapore International Arbitration Centre on 3 July 2020.”

Jadestone said itself and Teikoku had now agreed a “full and final” settlement over the dispute.

“When considering the amount payable under the settlement, together with fees payable by the company, Jadestone will not experience a significant increase in its cash position.”

At 1248 GMT, shares in Jadestone Energy were up 1.69% at 54.41p.