Pending Legal Action by MonTerra, page-4

Hi Werdna007

Yes I was aware of the cancellation, however they (Monterra) clearly allege they have done something to earn that money.

TEG has acknowledged that their may be a future claim in their annual report as a result of that termination.

Read the Annual Report 2015
Page 55 note 19

Contingent Liabilities
A condition of the Pase PSC being executed in May 2015 included that the consolidated entity provide a US$1.5 million performance bond. As at 30 June 2015, the consolidated entity had not provided this bond. Subsequent to year end, the bond was provided in the form of a bank guarantee. Please refer to note 22 for details.

On 17 November 2014, Triangle Energy entered into a contract with MonTerra Ltd who was to assist the Company in exploring possible joint ventures or strategic partnerships in Indonesia, developing strategies to secure a long-term PSC for the Pase gas project and securing investment into the Company or its projects. For Pase advisory and only in the event of Triangle Energy securing a Production Sharing Contract (“PSC”) equal to or greater than 15 years, a success fee of US$750,000 was to be
payable within 60 days of the announcement and includes all the consents and approvals from all the appropriate bodies.

For investment advisory and only in the event MonTerra successfully introduces and investor or financier to the Company, a fee of 7% of the proceeds raised from the relevant investor of financier was to be payable at the time of completion.

On 20 April 2015, Triangle terminated the agreement with Monterra Ltd. There is a risk that there may be a future claim against the Company in relation to the termination.



I'm just surprised that the board have not notified the shareholders or made further comment on this action by MonTerra Ltd given the action was filed a week ago.