WESTPORT, Conn.--(BUSINESS WIRE)--The American Energy Group, Ltd. (AEGG) announced today that it has initiated separate legal actions in Pakistan for an injunction against Sui Southern Gas Company Limited (“Sui Southern”) and Hycarbex-American Energy, Inc. (“Hycarbex”), respectively, in furtherance of the prior interim orders of the Arbitration Tribunal of the International Chamber of Commerce. The final hearing in the arbitration proceedings initiated by the Company in 2012 occurred in June, 2014, and the Company is currently awaiting the announcement of the final award of the Arbitration Tribunal. In the arbitration proceedings, the Company is seeking to void the original 2003 Stock Purchase Agreement with Hydro Tur, Ltd. (“Hydro Tur”) under which the Company sold its Hycarbex subsidiary which holds the Yasin block concession in Pakistan. If the requested relief is granted to the Company by the Arbitration Tribunal, the Company will recover 100% ownership of Hycarbex. In that 2003 sale, the Company reserved an 18% gross production interest from the Yasin block concession. The Company’s alternative claim for relief in the arbitration proceeding is the recovery of all unpaid production revenues and the registration with the Pakistan government of a non-costbearing working interest in the Yasin block.
The new action filed in the Sindh, Karachi High Court names as defendants Sui Southern, Hycarbex, its parent company, Hycarbex Asia Pte. Ltd. (“Hycarbex Asia”) and two additional pro forma defendants and requests an injunction against Sui Southern against payment to Hycarbex of 18% of the total proceeds of gas sales. The requested injunction has been granted by the Karachi Court to the Company. The new action filed in the Islamabad High Court names Hycarbex, Hycarbex Asia and Hydro Tur as defendants and seeks injunctive relief against Hycarbex from interference with the Arbitration Tribunal-ordered notifications to Sui Southern to pay the Company directly its 18% of production, seeks injunctive relief against Hycarbex from acceptance by Hycarbex of any production proceeds which may be paid by Sui Southern, and seeks a deposit into the Court from Hycarbex of the sum of $1,436,137.81, which Hycarbex was ordered to pay by prior Interim Order of the Arbitration Tribunal dated September 25, 2013 as the estimated sum due through December, 2012. The Arbitration Tribunal likewise ordered in that prior Interim Order that Hycarbex direct Sui Southern to pay to the Company directly 18% of production occurring after December, 2012. The decision on the Islamabad High Court application is expected within the coming weeks.
The Company also announced today that it has sold 900,000 Common Shares to two investors for a cash consideration of $0.20 per share or a total consideration of $180,000 to the Company. The proceeds of the sale will be used for general and administrative operating capital and the legal expenses for the Company’s pending arbitration action.
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 firstname.lastname@example.org.