Carnarvon has given notice to Tiger requiring it to withdraw from the Wichian Buri joint venture in Thailand for underfunding its share of expenditures. Tiger does not accept Carnarvon's position.

The claim, being pursued in Alberta, Canada, where Pacific Tiger and Tiger Petroleum are headquartered, seeks specific performance of the joint operating agreement, including an order that Pacific Tiger transfer all its interests in the joint venture to SEAL, a declaration that the joint venture properties include Exploration Block L33/43, damages of US$2.2 million for negligence, breach of contract and breach of fiduciary duties, and ancillary relief.

“Carnarvon has commenced this legal action as it has been unable to otherwise resolve the various outstanding commercial matters between itself and Tiger Petroleum,” said Carnarvon Petroleum company secretary Rick Pullia.

Last year a new board at Tiger Petroleum decided to withdraw oilfield revenues from the field and refused to communicate its field development plans to its junior partner, after which Carnarvon successfully took action against Tiger through the Canadian legal system. Tiger was ordered to pay outstanding earnings and to comply with provisions of the joint operating and farm-in agreements relating to Wichian Buri.

Ealier this month Tiger Petroleum agreed to be acquired by Calgary-based Welwyn Resources Ltd in a scrip bid. Welwyn agreed to acquire all of the outstanding common shares of Tiger for one common share of Welwyn for each four and one quarter common shares of Tiger.

It remains to be seen whether Carnarvon and the new owners can come to terms.