TG World, AVCG and Brooks Range Petroleum Corp. have reached a settlement related to TG World’s participation in the Alaska joint venture involving AVCG and BRPC, and BRPC now plans to drill at the companies’ North Slope Beechey Point unit this winter.
TG World Energy Corp. said today that that its wholly owned U.S. subsidiary, TG World Energy Inc., “has settled all outstanding legal disputes” with AVCG and BRPC.
AVCG-BRPC began proceedings against TG World in December 2008, TG World said, “alleging that TG World had breached its obligations under the agreements governing the joint venture.”
TG World said it denied all allegations and the joint venture partners have been in dispute, “but have now resolved these differences with this settlement effective immediately.”
Litigation between the parties “and related claims and counterclaims have been dismissed with prejudice,” TG World said.
As part of the settlement, TG World executed the Beechey Point unit agreement.
BRPC Vice President of Land Jim Winegarner told Petroleum News in early August that — dependent on settlement of the dispute with TG World — BRPC hoped to drill a delineation well in its North Shore prospect, part of the proposed Beechey Point unit, and a well at the Tofkat prospect east of the village of Nuiqsut. The state approved the 52,876-acre Beechey Point unit in late August without TG World’s signature, saying that the signing owners controlled 78.9 percent of title to the 25 leases, “which is effective control under the unit operating agreements.”
Winegarner told Petroleum News in an e-mail that now that the dispute is settled, the plan is to drill one to two exploration wells in the Beechey Point unit this winter.
See story in Oct. 4 issue, available online at noon, Alaska time, Friday Oct. 2 at www.PetroleumNews.com