Legal Action Starts over Malta Area 4 PSC
Mediterranean Oil and Gas (MOG) announced to the London Stock Exchange late Thursday (London time) that it "continues to refute" claims against it concerning a deal involving the Malta Area 4 production sharing contract. The statement came after Leni Gas and Oil announced Thursday lunchtime (London time) that it had begun legal proceedings against MOG in the High Court of England and Wales.
The news follows a September 2012 announcement from Leni that it had instructed lawyers to force disclosure from MOG about a deal made in late August in which Genel Energy agreed to pay MOG $10 million in return for a 75-percent stake in the Area 4 license. The Genel deal came less than a month after another deal in which Leni sold its 10-percent interest in Area 4 to MOG.
Leni previously said it wants to know what MOG knew about Genel's interest was in Area 4 at the time of its sale of its 10-percent interest in the license.
In a statement, Leni Chief Executive Neil Ritson said Thursday: "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."
Leni Chairman David Lenigas added: "The company's strong view is that it was misled by MOG at the time LGO sold its 10% interest on July 31, 2012. As MOG won't confirm the facts, we will now let the Court decide on the matter."
MOG responded in its own statement Thursday that it continues to refute the various claims which have been made by Leni and that it "has addressed these allegations in lengthy and detailed correspondence over a period of four months", adding that "the allegations made are unfounded and the company will defend itself and the interests of its shareholders rigorously and will seek indemnity costs against [Leni Gas and Oil]".
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