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Wednesday, November 17, 2010
Africa Oil Corp. reported that the Kenyan High Court has agreed, subject to certain conditions, to lift the Stay Order which had halted exploration activity on Blocks 10BB, 12A and 13T.
A scheduled hearing was held at the High Court in Kitale, Kenya, on November 16. The proceedings concern an application filed by Interstate Petroleum against the Permanent Secretary of the Kenya Ministry of Energy, seeking a judicial review of the administrative process that led to the issuance of alleged exploration permits in respect of six blocks in northwest Kenya. In actual fact the Ministry had granted six petroleum agreements including the Blocks 10BB, 12A, and 13T. This Application resulted in Africa Oil, among others, being named as an "interested party" to the proceedings.
The result of the hearing on November 16 is that the Court has agreed to lift the previously-granted Stay Order which had halted exploration on the blocks subject to the “interested parties” agreeing to compensate the Applicant for any resulting loss it may incur. The Court has set a date of December 16, 2010 for issuing a final ruling on the case.
The Ministry of Energy has previously advised that work programs on the blocks can move forward and the PSCs remain in good standing.
Keith Hill, the AOC President stated, "We are advised that the court proceedings went very well. We had requested an early resolution of the matter and are extremely optimistic that the December 16 ruling will dismiss Interstate's application."
Alec Robinson President & CEO of Centric Energy, who was also named as an ‘interested party” in the case, said: "Centric Energy is very pleased that the Stay Order is being lifted so that exploration activity will be able to continue. We look forward to having this matter finally resolved on December 16, 2010."
"We believe that there is no basis for the claims that IPL is making against the Permanent Secretary, Ministry of Energy, and understand that both the Permanent Secretary and the Ministry of Energy share this view," Robinson added
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