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WESTPORT, Connecticut--(BUSINESS WIRE)--
The American Energy Group, Ltd. (AEGG), which owns an 18% interest in oil and gas production in the Yasin concession block in Pakistan and interests in other non-producing Pakistan concessions, announced today that it has delivered to the gas purchaser, Sui Southern Gas Co. Limited, a joint instruction letter signed by both AEGG and by Hycarbex-Asia Pte. Ltd. (Hycarbex-Asia), the parent company of Hycarbex-American Energy, Inc., directing Sui Southern Gas Co. Limited to pay directly to AEGG each month its 18% share of the gross amount of each monthly gas sale from the Yasin concession block. The joint instruction letter was prepared pursuant to a February 25, 2014 order of the arbitration tribunal of the International Chamber of Commerce (ICC).
The Company further announced that it is in preparations for its June 16, 2014, final arbitration hearing before ICC arbitration tribunal in which AEGG is seeking to void the original 2003 Stock Purchase Agreement with Hydro Tur, Ltd. under which AEGG sold its Hycarbex-American Energy, Inc. (Hycarbex) subsidiary which holds the Yasin block concession in Pakistan. If the requested relief is granted to AEGG, AEGG will recover 100% ownership of Hycarbex. In that 2003 sale, AEGG reserved an 18% gross production interest from the Yasin block concession. AEGG’s alternative claim for relief in the arbitration proceeding is the recovery of all unpaid production revenues. The final hearing was originally scheduled for February 17, 2014, but on February 13, 2014, the Singapore-based liquidators of Hycarbex-Asia filed in the High Court of Justice, Chancery Division, Companies Court, their application for United Kingdom recognition of the liquidation proceedings for Hycarbex-Asia ongoing in Singapore with the goal to suspend the pending arbitration. The English High Court refused to suspend the arbitration proceeding and ruled that the High Court’s recognition of the foreign liquidation proceedings for Hycarbex-Asia would not apply to the ICC arbitration proceeding. The English High Court further ordered the liquidators who filed the application to personally pay to AEGG £40,000 for the costs incurred in defending the application, which have been paid. Immediately prior to the scheduled arbitration proceeding, Hycarbex-Asia dismissed its legal counsel and then followed on February 18, 2014, with another application to the tribunal to vacate or postpone the scheduled hearing. The application to vacate the arbitration proceeding was denied by the tribunal, but the final hearing date was adjourned until June 16, 2014 in order to afford new counsel time to adequately prepare. However, in conjunction with the reschedule of the final hearing, the tribunal issued new orders which required Hycarbex-Asia to pay all of AEGG’s costs incurred in defending the application, to execute with AEGG the joint instruction letter to Sui Southern Gas Co. Limited and to pay to AEGG $50,000 for the costs incurred by AEGG. These costs have been paid to AEGG.
The ICC arbitration tribunal previously issued an order for interim relief on September 25, 2013, which ordered Hycarbex, Hycarbex-Asia and Hydro Tur, Ltd. to pay to the Company 18% of all sales proceeds of hydrocarbons received by such parties after August 2011. The 18% of production proceeds for the period now exceed $2,980,456. Hycarbex, Hycarbex-Asia and Hydro Tur, Ltd. have failed to comply with the arbitration tribunal’s order of payment to AEGG.
This news release contains forward-looking statements, including estimated time lines for future events. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance and underlying assumptions and other statements, including potential production rates and potential reserves, which estimates are unproven and not based upon actual production data or historical facts. Forward-looking statements are subject to uncertainties and risks including, but not limited to, economic conditions, drilling risks and actual operating conditions and results, deviation in costs of critical equipment and services, deviation in production decline rates, the impact of competition and commodity pricing, and domestic and foreign governmental regulation and approvals.
All forward-looking statements in this disclosure, whether made by, or on behalf of the Company or by or on behalf of the project operator, are expressly qualified by the above cautionary statements and any other cautionary statements which accompany the forward-looking statements. In addition, the Company disclaims any obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
For further information contact Pierce Onthank, President and CEO at (203) 222-7315 or [email protected].
The American Energy Group, Ltd.
Pierce Onthank, 203-222-7315
President and CEO