Leni, MOG Go to Court Over Malta Deal

Leni Gas & Oil yesterday issued proceedings against Mediterranean Oil and Gas Plc (“MOG”) in the High Court of England and Wales in regard to the Company’s 31 July 2012 sale of its 10% interest in Malta Area 4 PSC to MOG.

Leni’s Chief Executive, Neil Ritson said: “We have repeatedly asked MOG to answer simple questions explaining the facts at the time the Company agreed to sell its interest and since we have not had what we regard as satisfactory answers, LGO’s board has found itself with no option but to seek relief through the Courts.”

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.

David Lenigas, the Leni’s Chairman commented: “The Company’s strong view is that it was misled by MOG at the time LGO sold its 10% interest on 31 July 2012. As MOG won’t confirm the facts, we will now let the Court decide on the matter.”

As a response to LGO’s claims Mediterranean Oil and Gas Plc said:

“MOG continues to refute the various claims which have been made by LGO.  MOG has addressed these allegations in lengthy and detailed correspondence over a period of four months.  The allegations made are unfounded and the Company will defend itself and the interests of its shareholders rigorously and will seek indemnity costs against LGO.

 The Genel Energy Plc transaction announced by MOG on 21 December 2012 and the proposed Malta work programme, which includes drilling contracts being signed for commencement of drilling in Q4 2013, are unaffected by this dispute.”

 

Related:

MOG, Genel Sign Two Contracts for Exploration Off Malta

LGO Sells Malta Stake. Puts Focus on Trinidad

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Offshore Energy Today Staff, January 4, 2013

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