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VERONEX RESOURCES LTD. ISSUES STATEMENT ON ARBITRATION AWARD CONCERNING OIL PROJECT IN INDONESIA

 VERONEX RESOURCES LTD. ISSUES STATEMENT ON ARBITRATION AWARD
 CONCERNING OIL PROJECT IN INDONESIA
 VANCOUVER, B.C., Dec. 17 /PRNewswire/ -- The board of directors of Veronex Resources Ltd. (AMEX: VX; VSE: VEO), has released the following:
 "Veronex Resources Ltd. reports that Judge Rafeedie of the United States District Court, Central District of California, has granted Triton Indonesia, Inc., Triton Energy Corporation and TRITON OIL (NZ) LTD.'s Motion to Confirm the Arbitration Award concerning the Enim Oil Project in Indonesia.
 In January 1990, Nordell International Resources Ltd., a wholly owned subsidiary of Veronex Resources Ltd., demanded an arbitration with Triton Indonesia Inc. and its parent company, Triton Energy Corp., for the purpose of enforcing the terms of the Farmout Agreement.
 On Dec. 13, 1990 the panel of three arbitrators issued its award which was adverse to Nordell and Veronex. The arbitration award appears to be contrary to the explicit terms of the Farmout Agreement. The arbitration award was remanded back to the original panel of arbitrators for clarification and resolution. The panel of arbitrators clarification award confirmed that the arbitrators were, in fact, ruling in favour of Triton despite, and contrary to, the agreement.
 Veronex and Nordell intend to appeal Rafeedie's order confirming the arbitration award to the United States District Court of Appeals for the Ninth Circuit. The company's appeal will be based on Title 9, United States Code, Section 10, which provides the basis upon which an arbitration award can be vacated. The courts have determined that arbitration awards must draw their essence from the agreements and, in cases where the award is not consistent with the clear and unambiguous language of the agreements, the award can not be enforced. In other words, the arbitrators cannot render their "own brand of industrial justice" by ruling inconsistent with the agreement.
 The arbitration award is now a final judgement and in the event the award is upheld on appeal, and the company's other intended legal remedies are ineffective, the result would have a material adverse effect on the company's financial position and future operations.
 The arbitration award is now a final judgement and in the event the award is upheld on appeal, and the company's other intended legal remedies are ineffective, the result would have a material adverse effect on the company's financial position and future operations."
 The Vancouver Stock Exchange has neither approved nor disapproved this news release.
 -0- 12/17/91
 /CONTACT: David Wooldridge of Veronex Resources, 310-861-0383/
 (VX) CO: Veronex Resources Ltd., Triton Energy Corporation ST: IN: OIL SU:


CG -- CL006 -- 3014 12/17/91 14:21 EST
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Publication:PR Newswire
Date:Dec 17, 1991
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