Forum Energy, the UK incorporated oil and gas exploration and production company with a focus on the Philippines, has agreed a settlement agreement (the "Compromise Agreement") with Basic Energy Corporation today in relation to certain assets in the NW Palawan area, offshore Philippines, which were acquired from Basic Energy in a Sale and Purchase Agreement dated April 3, 2006 (the "SPA").

The Company had previously signed a conditional settlement agreement with Basic Energy last year, as announced on 10 May 2011, which would have concluded the arbitration process in relation to these assets, provided the conditions therein were met. However, as announced on 21 February 2012, that settlement agreement was not completed because not all required third party consents were obtained within the agreed timeframe. Consequently, the process reverted into arbitration.

Tags: Forum Energy