Triangle receives arbitration notice

By Ruli Setiawan

ASX-listed Triangle Energy (Global) Limited announced Monday that it has received a notice of arbitration issued by MonTerra Ltd.

MonTerra was engaged as Triangle's strategic advisor pursuant to a Services Agreement dated November 17, 2014. Triangle terminated the Services Agreement on April20, 2015 as Triangle considered that MonTerra had not provided the services required under the Services Agreement with the proper and reasonable care, skill and diligence required of a corporate adviser experienced in corporate oil and gas companies with operations in Indonesia, Triangle explained in a statement.

The company said the notice of arbitration relates to payments which MonTerra alleges are owed by Triangle, amounting to US$1,000,000 or a 19.99 percent equity stake in Triangle.

?The Board of Triangle is in the process of obtaining advice from its legal counsel in relation to the notice of arbitration, but at this stage intends to vigorously defend the claim, which it considers to be without merit,? Triangle said.

In accordance with the terms of the Services Agreement, the arbitration is to be administered by the Hong Kong International Arbitration Centre (HKIAC) under the HKIAC Administered Arbitration Rules in force when the notice of arbitration was submitted. The arbitration shall be governed by Hong Kong law.

Triangle operates the Pase Production Sharing Contract located in Aceh Province, North Sumatra.

Editing by Reiner Simanjuntak