Mediterranean Oil and Gas wins Malta legal dispute against Leni
LENI Gas and Oil (LGO) yesterday lost a court case against Mediterranean Oil and Gas (MOG), over its sale of an asset off Malta.
The judge presiding over the case, Mr Justice Males, said that LGO’s case “fails at every stage” and that MOG had no intention to mislead.
LGO brought proceedings against fellow Aim-listed oil and gas explorer MOG for not providing enough information about the exploration block it sold, which MOG bought for a nominal sum of $1m (£602,000) and then farmed out to Genel Energy for $10m. LGO argued that if it had known about the interest in the area it may not have sold it for such a low value.
“It may have seemed to LGO that the prospectivity for these proceedings and the amount at stake were such that the economics of this litigation were positive. However, litigation like the oil business is a high risk activity and LGO has failed to strike oil,” said Males in the ruling.
LGO said it is considering appealing the decision, but added that the judgement will have no impact on its operations.