Business News of 2014-07-10

Tano Oil Block disputes adjourned again

An Accra high Court has for the second time in two weeks, adjourned until July 16, hearing on the dispute over the ownership of Tano 2A oil block.

The adjournment was at the behest of all the three parties; Clontarf Energy Plc and Petrel Resources and Pan Andean Resources Ltd so that key discussions can continue.

The courtroom battle has attracted international attention following Ghana government’s decision to grant a licence to a US company over part of what Clontarf and Petrel believe to be the area covered in their Block Tano 2A agreement.

The importance of the Tano 2A Block to the prospects of Petrel Resources in May forced its managing director, David Horgan, to step aside from his role to focus on bringing the company’s oil block dispute in Ghana to a successful conclusion.

In April, Petrel Resources and Clontarf Energy PLC were granted an injunction in the High Court of Ghana protecting their rights to the exploration block in shallow water offshore Ghana.

They sought the injunction after discovering that a rival rights application by the US's CAMAC Energy Inc, which might overlap with a portion of the rights the two companies believe they have on the block, had been ratified.

At the end of June, both Clontarf and Petrel said the court proceedings had been adjourned for a first time and would be heard again on July 7.

Clontarf has a 60% interest in the block and Petrel a 30% interest. The companies were seeking confirmation that the rival ratification did not impose on the area covered by the block.