SERVICES group Energy Drilling Australia (EDA), a subsidiary of Ausdrill, is claiming $6.7 million in compensation from Senex Energy in a proceeding arising from what it says is the wrongful cancellation of a drilling contract.

The Queensland oil and gas explorer said it had cancelled a drilling contract with EDA in March 2015 due to material breaches of the contract relating to the performance of the relevant rig.

“Prior to terminating the contract, Senex gave EDA a generous amount of time (above and beyond the contractual requirements) to remedy the breaches, but EDA failed to do so,” Senex said.

Senex said it would defend the proceeding vigorously and would counterclaim for about $1.2 million in losses, saying it had made numerous attempts to secure a reasonable outcome.