Conico's arbitration appeal

Conico (ASX:CNJ) has announced its intention to appeal an arbitration decision involving a dispute with Cartwright Drilling Inc. The disagreement pertains to unpaid invoices from the 2022 field season in Greenland, totaling approximately A$1,564,500. The arbitration, held in Newfoundland, ruled in favor of Cartwright, holding Conico and its subsidiary, Longland Resources Ltd, jointly liable for a significant amount.

Conico's future steps and implications

Conico is actively seeking to overturn the arbitration ruling that held it and its subsidiary liable for a substantial financial obligation to Cartwright Drilling Inc. The dispute focuses on perceived deficiencies in Cartwright's performance during the 2022 drilling season in Greenland. Despite the adverse arbitration outcome, Conico plans to challenge the decision through an appeal and judicial review in the Supreme Court of Newfoundland and Labrador. This step reflects the company's strategy to mitigate financial impacts and uphold its interests. Future updates will be communicated to shareholders as the process unfolds.

Executive commentary on arbitration

The arbitration process resulted in Longland and Conico being jointly and severally liable to Cartwright for C$951,420.87, including outstanding invoices and contractual interest, and Longland being liable for C$391,247.41 for work at Mestersvig. Conico intends to appeal and seek judicial review of this decision in the Supreme Court of Newfoundland and Labrador, with further updates to be provided to shareholders.