Ithaca Energy Shares Slide after Disclosing North Sea Dispute



Reuters

May 28 (Reuters) – London-listed shares in oil and gas company Ithaca Energy fell by as much as 18 percent after the Calgary-based firm said it had received a legal claim regarding its Greater Stella Area oil field in the North Sea.

The company, which denied any wrongdoing, said a statement of claim had been lodged complaining it had misrepresented the schedule for completing modifications at a floating production facility.

Ithaca said in February that modifications to the "FPF-1" facility, being carried out by UK oil services firm Petrofac Ltd , would not be completed until 2016.

Ithaca noted that the statement of claim had come from a law firm that advertises itself as undertaking investor law suits.

Toronto-based law firm Morganti Legal said in March that it was investigating whether Ithaca's views about the completion date of FPF-1 were "overly optimistic".

Morganti and Petrofac were not immediately available for comment.

Ithaca's London-listed shares fell as low as 42.5 pence before recovering to 49.49 pence, down 5.3 percent by 0820 GMT.

(Reporting By Mamidipudi Soumithri in Bengaluru; Editing by Anupama Dwivedi and Rodney Joyce)



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