MOG Dismisses LGO Claims. Malta Area 4 Ops Unaffected

The Board of Mediterranean Oil and Gas today said it noted the announcements by Leni Gas and Oil plc (“LGO”) on 23 and 24 September 2013 and restates its position both as regards progress on Malta Area 4, and on certain matters in relation to the legal claim made by LGO against two subsidiaries of the Company.

The Company stated: “First, and foremost, the offshore Malta Area 4 work programme is unaffected by the dispute with LGO. We continue to work closely with our partner Genel Energy plc and with the Malta authorities to prepare for the drilling operations that are forecast to commence in Q1 2014.”

“With respect to the dispute with LGO, their Recent Announcements, including their mention of being open to settlement discussions, give MOG further reassurance in the defence by the Company’s two subsidiaries against the legal claim made by LGO.”

“MOG continues to refute the various claims that have been made by LGO and remains confident that the Company will face no liability. The allegations in the proceedings LGO has brought are unfounded and the Company will defend itself and the interests of its shareholders against such allegations at the trial of the action, scheduled for March 2014.”

To remind, Leni Gas & Oil (LGO), in July last year 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.

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.

David Lenigas, LGO Chairman, earlier this week said :“LGO has steadfastly maintained that it was misled by MOG in July 2012. While we remain open to settlement discussions, we are resolved to vigorously pursue our multi-million pound claim to trial if necessary.”

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September 27, 2013