Australia's Peak Oil and Gas Limited (Peak) has executed a conditional settlement deed (Deed) with Cadlao Development Company Limited (Cadco) (formerly Blade Petroleum Limited) in relation to the Company's dispute with Cadco regarding the Cadlao Farmin Agreement (Cadlao FIA) for Service Contract (SC) 6, located in the northwest Palawan Basin in the Philippines, which contains the Cadlao Redevelopment Project.
The Deed requires Peak, inter alia, to:
transfer its interests in Peak Royalties Limited which holds certain overriding royalty rights pertaining to SC6 Cadlao
terminate the Cadlao FIA between Peak and Cadco which effectively releases any claim Peak has to direct working interests in SC6 Cadlao (not including the Peak's interest in VenturOil); and
terminate the arbitration process (Arbitration) in respect to its dispute with Cadco regarding the Cadlao FIA
In return, Cadco would pay Peak an amount of approximately $6.3 million (AUD 6.7 million).
The parties agreed that settlement would take place Aug. 6. However Cadco has failed to remit the agreed amount by this date.