Carpathian, Geocan Energy and Unigeo have sold their combined interest in the Breclav license, which includes the Postorna oil pool, to Ceska Naftarska Spolecnost (Czech Oil Company - COC) for 100 million Czech Crowns.

Carpathian's share of the proceeds is 17.77 million Czech Crowns (A$0.91 million), to be paid in three tranches, with the first payment to be made today.

The company originally farmed into the exploration area for a 17.6471% working interest in 2001, with the first exploration well, Postorna-1, successful in discovering a new oil pool.

Immediately on receiving the results of Postorna-1 the directors of COC initiated a series of actions designed to wrest control of the Beclav exploration area from the Joint Venture.

Since then the venture partners have been working to settle the dispute with the High Court in Olomouc ruling in favour of Carpathian and its partners in an Injunction Application prohibiting COC from encumbering, alienating or otherwise disposing of the Postorna-1 well or from entering into any contracts relating to the Breclav license.

Based on the dispute the Czech Ministry of Environment required all parties to settle ownership relations before approval would be given for development of the Postorna oil field.

Carpathian said the end result equalled a return of five times its investment in the Joint Venture.

The executive directors of Carpathian are facing a motion to remove them from the board, driven by veteran oilfield investor and director, Eddie Smith.