The Court of Appeal has ruled against GXL Royalties in the latest of a complex series of skirmishes over the transfer of an onshore North Taranaki petroleum exploration permit.The permit in question, PEP 38742, was transferred fro
The Court of Appeal has ruled against GXL Royalties in the latest of a complex series of skirmishes over the transfer of an onshore North Taranaki petroleum exploration permit.
The permit in question, PEP 38742, was transferred from Swift Energy to the Greymouth Petroleum Group in August 2008. Greymouth is now working the Kowhai well within the permit area.
Todd family-owned GXL Royalties alleged that the sale breached a royalty agreement between GXL and Swift, which required consent to be sought from GXL before the transfer of a specific part of the permit.
Both Todd and Greymouth had placed bids for PEP 38742 when it was put up for sale.
Greymouth then successfully lodged a counterclaim, on behalf of both Greymouth and Swift, that GXL had refused consent for reasons other than concern about Greymouth’s ability to meet financial obligations.
Dispute as to whether GXL is required to plead to this allegation continues.
In separate proceedings, GXL took the Minister of Energy, Greymouth and Swift to court to challenge the minister’s approval of the sale – and the Court of Appeal last week upheld Justice John Wild’s April 2009 ruling in favour of them
Justice Wild said in his judgment that GXL Royalties had succeeded in showing the minister had to advise the company if he was going to change his opinion.
However, he refused to grant any relief to the company as he “could not see any basis on which the minister would reach a different decision the second time around.”
He ordered GXL to pay court costs to Greymouth Petroleum, Swift Energy and the Minister of Energy.
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