Welwyn has agreed, subject to certain conditions, 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.

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.

Carnarvon said it will continue its discussions with Tiger with a view to reaching a commercial settlement of this and other matters prior to the anticipated closing of the Tiger and Welwyn transaction. “However, in the event that a resolution is not reached in a timely manner, Carnarvon will pursue its rights in the Canadian courts,” it said.

A new board at Tiger Petroleum last year 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.