1st Oct 2008 10:09
1 October 2008
Victoria Oil & Gas Plc
("VOG" or the "Company")
Update on Kemerkol Legal Case
The Board of Victoria Oil & Gas Plc (AIM:VOG), the AIM-quoted oil and gas exploration company, further to its announcement of 25 April 2008, announces an update on the claim brought against its Kazakh subsidiary Victoria Energy Central Asia LLP, ("VECA") the holder of the Kemerkol licence in Kazakhstan ("the Asset"). The Company maintains that the claim has no merit.
VOG has been successful in gaining a judgement in default in the High Court of Justice in London against Ms Olga Elefteriadi for breach of warranties under the sale and purchase agreement signed between her and the Company. Damages for the breach will be established in due course and VOG expects the amount to be at least £8.5 million, the consideration paid for the Asset.
VOG has also been granted an injunction by the Court of the Queen's Bench in Alberta, Canada against Ms Elefteriadi, Saga Creek Gold Company LLP ("Saga Creek") the previous licensee of Kemerkol and its parent company, Alhambra Resources Ltd (listed on the Toronto Venture and Frankfurt Stock Exchanges). This injunction prohibits the sale or transfer of the Asset to any third party until further notice.
This injunction was obtained following the Company receiving confirmation that Saga Creek had applied to the Kazakh Ministry of Energy and Mineral Resources for permission to sell the Asset to a third party.
The Company is continuing to prepare its appeal to the Supreme Court of the Republic of Kazakhstan and further information will be given in due course.
Enquiries:
Victoria Oil & Gas Plc Strand Partners Limited
George Donne / Kevin Foo Simon Raggett / Angela Peace
+44 (0)20 7921 8820 Tel: +44 (0) 20 7409 3494
Conduit PR
Jonathan Charles / Ed Portman
Tel: +44 (0) 20 7429 6607
M: +44 (0)77333 63501
Related Shares:
VOG.L