27th Sep 2013 12:04
LONDON (Alliance News) - Mediterranean Oil & Gas PLC Friday said that work at its Malta site has been unaffected by the litigation brought against it by Leni Gas & Oil.
The company said that its subsidiary Genel Energy is preparing for drilling operations to commence in the first quarter of 2014 at the Malta Area 4 site.
The dispute dates to July 31, 2012, when Leni Gas and Oil sold 10% of its interest in a Malta prospect license to Mediterranean Gas and Oil. LGO argues that Mediterranean misled it regarding the potential sale in July 2012.
On September 23, LGO said that a trial date of March 2014 has been set by the court and that its legal advisor Mishcon de Reya has told the company it has a good prospect of winning the case.
"While we remain open to settlement discussions, we are resolved to vigorously pursue our multi-million pound claim to trial if necessary," LGO Chairman David Lenigas said in a statement.
In response, a spokesman from Mediterranean Oil and Gas told Alliance News, "our company continues to refute all the various claims that LGO has made against the company."
Mediterranean Oil and Gas said that the fact LGO is open to settlement reassures them of the defence against the legal claim by LGO.
On August 15, Mediterranean Oil and Gas appointed Memery Crystal LLP as its new solicitors for the case and said that together they are preparing their case towards trial.
At midday Friday, Leni Gas and Oil shares were down 2.5% to 0.830 pence, and Mediterranean Oil and Gas shares were down 2.1% to 6.00 pence.
By Tom McIvor; [email protected]; @TomMcIvor1
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