3rd Apr 2014 11:38
LONDON (Alliance News) - Leni Gas & Oil PLC said Thursday that it was considering an appeal in its legal dispute with Mediterranean Oil & Gas PLC over the July 2012 sale of its 10% interest in Malta Area 4.
Leni's argument was that Mediterranean misled it regarding the potential sale in July 2012. Last Thursday Leni's fraudulent misrepresentation action against the company was not upheld by the High Court of England and Wales.
Costs were awarded in favour of Mediterranean Oil & Gas on an indemnity basis in Thursday's hearing; Leni Oil and Gas will pay GBP600,000 to Mediterranean by April 10, with the remaining balance to be settled "in due course once agreed or assessed."
Leni said the settlement will not have any material impact on its ongoing oil production programmes in Trinidad and Spain as it was already provided for it its cash flow forecasts.
Leni reiterated that it has the necessary working capital to commence the 30 well development programme it has planned for the Goudron Field in Trinidad.
Shares in Leni were trading down 2.8% at 0.690 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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