Bendall's oil dream fades
MARK WORLEY
April 23, 2009 07:51am
FLAMBOYANT Tasmanian entrepreneur Malcolm Bendall's long-held dream of striking oil in Tasmania appears to be over.
Workers at the Bellevue drilling site, near Bronte Park in Tasmania's Central Highlands, will start disassembling a 30m-high drill rig which has been sitting idle since early December.
Adelaide drilling contractor Hunt Energy says it has been forced to take the drastic action after Mr Bendall's company Empire Energy allegedly failed to meet payment deadlines for their services.
Hunt managing director Larry Werecky said the action was being taken with regret.
"[Tomorrow] we will see activity on the rig in preparation for its disassembly," Mr Werecky said.
"I am sure there are people holding shares in Empire who would like to see us drilling. My boys and I would also very much like to start drilling.
"But, unfortunately, we are not in the position to go ahead at this time."
He said his company was owed a "substantial amount of money".
"There is still outstanding debt, which hasn't been paid as promised, and it looks like things will have to come down," he said.
"We haven't been paid since December. Of course, if the funds we are owed suddenly appear, then the situation will change."
Empire Energy has previously acknowledged the cost of having the Hunt Energy rig and crew on standby was more than $10,000 a day -- or more than $1.2 million since December.
Last month, Mr Bendall told the Sunday Tasmanian and the Mercury that Hunt would be paid $440,000 owed for their services within days, but it was never made.
Empire's exploration licence comes to an end on September 30 and it cannot be extended.
Mr Bendall has been searching for oil and gas in Tasmania since he had a "vision from God" more than 30 years ago.
He has been living overseas for the past five years, working as a paid consultant for Empire and other companies.
In December, he returned to Tasmania as Empire chief executive to oversee drilling at Bellevue, but was forced back to London when a funding deal with Hong Kong company Smart Win fell over.
He has been trying to secure new financing for the drilling but, despite several public announcements to shareholders that a deal had been made, the money has not materialised.
Mr Bendall could not be contacted yesterday.
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The Bellevue drilling rig will be pulled down after Empire Energy allegedly failed to meet payment deadlines.
