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Black Rock runs into partner trouble in Colombia

21 November 2006

Black Rock Oil & Gas is in dispute with its Colombian joint venture partner, Kappa Resources Colombia Limited, over cash calls under its joint operating agreements.

Black Rock said it had received a number of cash calls from Kappa for various activities, only some of which, about $1 million in value, had been fully approved and paid. Black Rock challenged the validity of a number of the remaining cash calls and without notice Kappa Energy Colombia Ltd then issued a default notice to the Company.

Black Rock has has commenced proceedings in Colombia to protect the Company's Colombian assets and to prevent Kappa taking any further unilateral action.

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