LONDON (ShareCast) - (Sharecast News) - Exploration and production outfit Oilex shares plummeted in early trading despite its joint-venture partner having finally submitted the 300m rupees (£3.25m) it had been ordered to do by the High Court of Gujarat earlier in the month.
The court dismissed Gujarat State Petroleum Corporation's request for an extension to a court order in their on-going legal battle just a day earlier.

Gujarat State Petroleum Corporation was directed to deposit 82.5m rupees (£882,866) as well as a 217.5m-rupee (£2.32m) bank guarantee through its registrar by 15 November.

Back in July, Oilex made moves to exercise its option to force Gujarat State Petroleum's withdrawal from its Cambay joint venture as part of the AIM-listed company's efforts to take full control of the asset after the local partner failed to pay its share of expenses.

In mid-August, Gujarat State Petroleum served the interim stay order in order to delay the transfer of its interest to Oilex and on Wednesday, applied to the High Court of Gujarat to extend the stay until 30 November as it sought to clarify financial conditions ahead of arbitration.

Separately, Oilex issued 90.19m new ordinary shares following the conversion of £200,252 worth of loan notes.

As of 1150 GMT, Oilex shares had sunk 18.14% to 0.42p.

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