BRPC sues TG World for breach of contract

Brooks Range Petroleum Corp. planned to file a complaint against TG World Energy Corp. in state superior court on Dec. 4, according to an executive with the company.

The complaint comes after Calgary-based TG World announced plans to postpone its participation in “drilling and development programs” planned for this winter. BRPC and TG World are part of a four-company joint venture exploring the North Slope.

According to a draft of the complaint, BRPC and its Kansas-based parent company Alaska Venture Capital Group claim TG World breached the joint venture contract by refusing “to participate in the costs of drilling two wells necessary to satisfy TG World’s obligations.”

TG World holds a 25 to 35 percent interest in operations undertaken by the joint venture.

The complaint charges that TG World notified BRPC and AVCG that it “will not participate in the costs of the wells,” and also “refused to convey to AVCG the Forfeit Interest.” According to the complaint, the terms of the contract requires any company not funding its share of the drilling costs to forfeit its working interest in the program.

BRPC and AVCG claim to have suffered more than $100,000 in damages.

Representatives from TG World could not be reached for comment by press time.

—Eric Lidji