CREDITOR Royal Bank of Scotland has, in a Canadian court hearing, blocked a bid by Oilexco Inc to participate in a new UK North Sea exploration well.
Oilexco Inc, which is restructuring after its UK subsidiary Oilexco North Sea was sold out of administration to Premier Oil for around £320million, said yesterday it had received an extension until July 7 of its existing bankruptcy protection under Canadian law.
It said in a statement this would allow it to remain in possession and control of its remaining assets, but an application made to participate in the new North Sea well was refused.
Oilexco Inc said: “One of the company’s creditors, Royal Bank of Scotland (RBS), strongly opposed the company’s application to participate in the drilling, and requested the court move in such a manner that would permit RBS to initiate a bankruptcy application against the company in a short time frame.
“While the court rejected the company’s request to participate in the drilling of a well, the court stated that it supports a successful reorganisation. As such, the company will continue its restructuring efforts.”