Leni Gas and Oil (LGO) will not appeal against the court judgement in the case against Medditerranean Oil & Gas Plc concerning a 2012 transaction of offshore blocks in Malta.
Leni Gas and Oil, in a statement made today said that, “after careful consideration, the Board has decided not to petition the Court of Appeal in its case brought in January 2013 against Mediterranean Oil and Gas plc. The Company will remain focused on its core oil production business in Trinidad; where a major 30 well development program is now underway at the Goudron Field, and in Spain.”
Background
Leni Gas & Oil (LGO), in July, 2012, sold its 10% share in the Malta Area 4 to MOG for 1$ for the interest plus $20,000 for its residual costs arising under the Joint Operating Agreement between the Parties associated with the acquisition of 3D seismic data in 2011.
Related: Leni pays for going to court with MOG
Only weeks after the transaction, MOG entered into farm-in agreements with Genel Energy Plc, led by ex-BP CEO Tony Hayward, for a $10 million cash consideration and two well commitment on the offshore Malta Area 4 PSC.
LGO has taken legal action against MOG and has, since the farm-in deal, claimed it was tricked by MOG into selling its 10% share.
To remind, after buying Leni’s 10% interest in the PSC through its subsidiary Phoenicia Energy Company Limited (“PECL”) , MOG sold a 75% working interest in Phoenicia to Genel.
“Leni would not have sold its interest for $1 plus liabilities had it been aware of interest from Genel Energy or other potential farm-in partners,” Leni said in a statement last year.