Leni Steps Up Pressure on MOG over Malta Deal
Leni Gas & Oil announced Tuesday that it has instructed lawyers to force disclosure from Mediterranean Oil and Gas (MOG) about its recent $10 million Malta deal with Genel Energy. The action has come after MOG failed to provide information requested by Leni about the deal by close of business Monday, the firm said.
On Monday Leni had said, in statement to the London Stock Exchange, it had attempted to seek confirmation about what MOG knew about Genel's interest in Malta Area 4 before the sale by Leni to MOG in early August of its 10-percent working interest in the license.
Leni announced at the start of August that it was selling its 10-percent stake in Area 4 to a subsidiary of MOG, Phoenicia Energy, for just a dollar. But MOG's more recent deal with Genel – announced in late August – will see Genel pay it $10 million in return for a 75-percent stake in Area 4.
When this news emerged, a source close to Leni told Rigzone that had the firm known about the Genel transaction, it may have taken a different view as to the value of its own deal with MOG earlier in the month.
Leni's lawyers, Mishcon de Reya, has since requested that MOG answer questions about the 3D seismic data acquired in 2011 on Malta Area 4 – in which Leni participated as a joint venture partner. Specifically, the firm wants to know what the 3D seismic actually indicates as to prospectivity and what risks and reserves were estimated and provided to Genel and on what date.
Leni also wants to know at what time any prospectivity became evident to MOG and its subsidiaries. And it wants answers about the dates that MOG first had discussions with Genel concerning the production sharing contract, or the underlying hydrocarbon deposits to which it relates, along with how Genel came to speak to MOG about the PSC and on what date the prospect of Genel buying an interest in the PSC was first raised.
But MOG responded Monday with its own statement refuting the suggestion that it may have misrepresented its position to Leni.
"As such, MOG has instructed its legal advisors to address directly the matters raised by [Leni], as appropriate, and to uphold and enforce MOG’s rights," said the firm.
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