TG World files counterclaim on AVCG

Claims it is not in violation of joint venture agreement by choosing not to fund share of North Slope winter exploration program

Eric Lidji

Petroleum News

A Calgary company claims it did not violate a joint venture agreement by deciding not to fund its share of an exploration program on the North Slope planned for this winter.

In Alaska Superior Court on Jan. 9, TG World Energy filed a response and counterclaim to a December 2008 lawsuit filed by Alaska Venture Capital Group, the Kansas parent company of Brooks Range Petroleum Corp., which is leading the exploration program.

TG World said a copy of the March 18, 2006, joint venture agreement between the companies presented as evidence was an “incomplete” version “lacking the schedules and exhibits incorporated by reference, and containing handwritten annotations, highlighting, underlining and commentary” that the company denies is part of the agreement.

At issue is whether TG World breached that contract, and therefore should be required to pay a “Forfeit Interest” required by any company in the joint venture that fails to pay its share of the work. The joint venture currently has four companies with differing shares.

TG says there is confusion

TG World is also challenging AVCG’s decision to assume a share of the interest held by another partner in the joint venture, Calgary-based independent Bow Valley Alaska.

In November 2008, TG World postponed its involvement in drilling and development programs this winter because of global financial uncertainty and low oil prices.

Before the lawsuit, the four-company joint venture announced plans to drill up to three wells in Gwydyr Bay this winter to follow up on previous wells in the area, which sits north of Prudhoe Bay. The joint venture, which includes Nabors subsidiary Ramshorn Investments, also plans to shoot seismic at the Slugger prospect south of Point Thomson.