Calvalley Petroleum Inc., (TSX: CVI.A) provides update on agency claim.
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CALGARY, Dec. 4, 2012 /CNW/ - Calvalley Petroleum Inc. (the "Corporation" or "Calvalley") is providing an update with respect to a claim filed in the Commercial Court of Yemen by a Saudi Arabian company (the "Claimant"). As previously disclosed by Calvalley, the Claimant alleges that, pursuant to an agency agreement entered into in 1996, it is entitled to ten per cent of the net profits attributable to the Company's Yemen operations. The Company is defending the claim in the Courts of Yemen. As previously disclosed, the Claimant has issued a Statement of Claim containing the same allegations in the Alberta Court of Queen's Bench and has recently purported to serve this Statement of Claim on the Corporation.
The Company has not attorned to the jurisdiction of the Alberta Court of Queen's Bench as: (i) the dispute involves or arises from an asset situated in Yemen; (ii) the agreement was not executed within the Province of Alberta; and (iii) the dispute has previously been before both the Supreme Court of Yemen and the Yemen Court of Appeal and the matter is still pending in those forums.
The outcome of the Yemen action, and the issue of attornment to the jurisdiction of the Alberta Court of Queen's Bench, is not determinable at this time. The Company continues to explore both judicial, and extra judicial, resolution of the matter.
About Calvalley Petroleum Inc.
Calvalley is an international oil and gas company, with offices in Calgary, Alberta, Canada, that operates its 50% working interest in Block 9 of the Masila Basin, in The Republic of Yemen and its 100% working interest in the Metema Block of the Blue Nile Basin, in The Republic of Ethiopia.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Certain information contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Investors are encouraged to review the principal risks associated with the Corporations operations set out in the Corporation's Annual Information Form for the year-ended December 31, 2011 a copy of which is filed on SEDAR at www.sedar.com. Forward-looking statements are based upon management's assumptions, expectations and estimates at the time that such statements are made. The Corporation does not update forward-looking statements should circumstances change or management's assumptions, expectations or estimates change, except as required by law.
SOURCE: Calvalley Petroleum Inc.For further information:
email@example.com or +1 (403) 297-0490
Edmund Shimoon, Chairman and CEO
Gerry Elms, CFO