Agriterra receives acknowledgment of compensation to be awarded from MPM.
M2 EQUITYBITES-May 25, 2012-Agriterra receives acknowledgment of compensation to be awarded from MPM(C)2012 M2 COMMUNICATIONS http://www.m2.com
Pan African agricultural company Agriterra Ltd (AIM:AGTA) announced on Friday that following its instigation of international arbitration proceedings, the Ministry of Petroleum and Mining of the Republic of South Sudan (MPM) has acknowledged in writing the company's entitlement to receive a compensation payment, as assessed by the country's National Petroleum Commission (NPC), of GBP11,372,682.
Agriterra said that the MPM acknowledged that compensation should have been paid much earlier and has confirmed that it will be paid within one year, adding that the compensation is partial recompense for the work undertaken and the investment made by it on the Block Ba oil concession area in Southern Sudan, during its previous incarnation as White Nile Limited, an oil and gas exploration company.
White Nile commenced exploration work on Block Ba in 2005 and continued exploratory activities prior to the NPC's decision to prohibit exploration work in the area, in June 2007, the company added.
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