GeoGlobal Advises Claim of Interest in Colombia License and a US$650 Million Damages Claim in India
KEY CAPITAL CORPORATION (PINKSHEETS: KCPC) and GEOGLOBAL RESOURCES INC ("GeoGlobal") (PINKSHEETS: GGLR) jointly advise the following with regard to GeoGlobal's affairs that are unrelated to its current ongoing E&P operations in the Cambay and Krishna-Godavari Basins in India:
Colombia License:
GeoGlobal, through agreement with Petro Caribbean Resources Ltd, prepared a Bid on two highly prospective oil and gas exploration blocks (PUT 6 and PUT 7) in Colombia and a related party to GeoGlobal provided the Bid guarantee of US$100 million plus to Agencia Nacional de Hidrocarburos in order that the Bid have the required financial support.
GeoGlobal provided all the technical input and preparation of Bid documentation as well as for the Work Program. The Agreement between the parties provided for an Operating Agreement and/or a joint venture to be entered into under which GeoGlobal was to receive a 10% Carried Interest as well as an option for a 40% Participating Interest. This Operating Agreement and/or Joint Venture Agreement was never provided by Petro Caribbean. Although Petro Caribbean purported to terminate all of GeoGlobal's rights and entitlements in May 2013, GeoGlobal responded to Petro Caribbean the following month strongly contesting this action, and further will continue to contest it.
It has recently come to GeoGlobal's attention that Petro Caribbean has sold a 100% interest in the Putumayo 7 block to PetroGranada an investment vehicle of a division of Barclay's Bank PLC (50%) and to TSX-V listed Petroamerica Oil Corp (50%). GeoGlobal has provided notice to all parties that it is contesting the sale without consideration to GeoGlobal's entitlements and without GeoGlobal's knowledge or consent and, further, should the interest in this property be dealt with by the parties in any way without GeoGlobal's consent or participation then GeoGlobal will be reserving its right to legal remedy.
Oil India Limited:
GeoGlobal is currently in an Arbitration in India with public sector major, Oil India Limited, and contrary to Press coverage in India on September 9, 2014, there has been no deal negotiated to settle the matter. GeoGlobal denies the substantive claim by Oil India for past project costs and has recently filed responses to Oil India's claims together with Counterclaims and, although not a direct Arbitration matter, GeoGlobal has provided notice of a damages action of over US$650 million arising through alleged breach of Agreement, negligence, incompetence and gross over charging by Oil India.
All GeoGlobal assets in India are 100% owned by the Company's Barbados subsidiary which will continue to provide, where required, for full technical support and the geophysicist services of geoscientist Jean Paul Roy, the sole Officer of the GeoGlobal Barbados subsidiary and the Chairman, President and CEO of GeoGlobal. Maintaining the status quo of all existing relationships as well as working towards industry excellence in India is a major focus for GeoGlobal moving forward. GeoGlobal has already been formally recognized and awarded in India for its contribution to discovery and for its technical capabilities and this level of achievement and performance is a key milestone that GeoGlobal will strive to maintain in India.
ABOUT KEY CAPITAL: Key Capital is a streaming, structured finance, and equity funder of mining projects that through its funding agreements with its client partners retains an interest in the production of mines containing gold, silver, or base metals, or in energy products. The Company is a Georgia corporation headquartered in Scottsdale, Arizona that holds a 65% interest in GeoGlobal Resources, Inc., and has agreement with related party, Red Rock Assets, LLC, for the funding of resource and energy projects through the www.redrockassets.com lending platform.
For further information: www.keycapitalgroup.com or Contact Chris Nichols, President/CEO at +1 (480) 745-2625, or info@keycapitalgroup.com
ABOUT GEOGLOBAL RESOURCES INC: GeoGlobal Resources Inc. is an emerging international oil and gas E&P company with interests in India, Israel and Colombia. Oil production has commenced in three of the Company's interests in the onshore Cambay Basin, and gas production testing commenced last month from the major proven offshore Deen Dayal field in the Krishna-Godavari Basin where GeoGlobal's partners have spent over US$2.8 billion on exploration and development to date.
For further information: www.geoglobalresources.com or contact info@geoglobalresources.com
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