05:42 PM EDT, 08/20/2024 (MT Newswires) -- Enerflex ( EFXT ) was last seen down 1.8% in after-hours New York trading after the company Tuesday said its customer for the EH Cryo Project in Kurdistan will terminate its contract next month.

The project was setback in April after being hit by a deadly drone attack

"Enerflex ( EFXT ) had provided its customer with notice of Force Majeure, suspended activity at the project site, and demobilized its personnel. Since that time, Enerflex ( EFXT ) added it has worked collaboratively with its customer to evaluate the situation and assess potential options to complete the project notwithstanding the prevailing security situation at the project site. Despite these efforts, Enerflex ( EFXT ) said Tuesday it has received a notice that its customer intends to terminate the EH Cryo project contract with effect as of September 8", the company said.

Enerflex ( EFXT ) said it views the "purported termination" as a "wrongful attempt by its customer to circumvent Enerflex's ( EFXT ) contractual rights to suspend performance while the project site remains unsafe" -- adding that is "a conclusion that is supported by expert security input". Enerflex ( EFXT ) said it intends to dispute such wrongful purported termination and to protect its position in respect of the EH Cryo project.

Enerflex ( EFXT ) said it is focused on resolving this matter while protecting the best interests of the company and its stakeholders.

The company's shares were last seen down US$0.10 to US$5.58 after hours. They closed down $0.35 to $7.76 on the Toronto Stock Exchange. They closed down $0.35 to $7.76 on the Toronto Stock Exchange.