The directors of Oil Basins Limited said the company has not resigned its operatorship of one of its onshore permits.
The company said it had not resigned as operator of the Derby block, EP487.
Oil Basins said it had advised Rey Resources Limited and its subsidiary that Rey does not meet the agreed preconditions and minimum legal requirements to perform as operator in accordance with the permit grant.
It has also been claimed that Rey Resources has not paid the outstanding cash calls for work completed between June and December last year.
The company has since commenced planning and costing for the new environmental plan covering drilling and production testing, groundwater monitoring and drilling of bores.