Anzon told the Australian Stock Exchange yesterday afternoon that it had received a claim from Woodside subsidiary Woodside Eastern Energy alleging that Anzon’s termination of an agreement between Anzon and Woodside for the acquisition by Anzon of Woodside’s interest in Retention Lease Vic/RL2 was wrongful.

The claim related to a sale and purchase agreement entered into between Anzon and Woodside on February 23, 2004.

Anzon said the sale was conditional onthe unconditional consent of Woodside’s joint venture partners.

"Such consent was not forthcoming," company secretary Tony Strasser said. "Therefore, Anzon terminated the sale and purchase agreement on June 25, 2004."

However, Woodside refused to accept Anzon’s termination and purported to terminate the agreement itself by releasing to the ASX on June 29, 2004, an announcement titled “Woodside terminates Kipper gas field sale”.

According to Anzon, Woodside alleged it sold its interest in Vic/RL2 in May 2006 for an amount that was about $A22 million less than the price specified in the February 2004 sale and purchase agreement. Therefore, Woodside was demanding that Anzon pay about $A22 million plus interest.

But Anzon said Woodside had not provided any details in relation to the sale of their interest in Vic/RL2, in particular how such a lesser sale price was achieved in an environment of energy prices that were close to double that which existed at the time the agreement with Anzon was signed.

As well, a production license had since been granted in respect of the Vic/RL2 field, with Woodside telling the ASX on June 29, 2004, that production from Vic/RL2 “is currently commercially viable”.

Strasser said in the interests of its shareholders, Anzon would vigorously defend the proposed claim and that it had a strong record of compliance regarding its contractual obligations and commitments.