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3 Apr 2014 11:48
For Immediate Release
3 April 2014
Leni Gas & Oil PLC
("LGO" or the "Company")
Litigation Update
LGO today announces that it is now considering an application to the Court of Appeal in its action against Mediterranean Oil and Gas plc ("MOG") over the July 2012 sale of its 10% interest in Malta Area 4.
In the hearing earlier today costs in the action were awarded in favour of MOG, as expected, on a indemnity basis. LGO has agreed to pay the sum of £600,000 to MOG by 10 April 2014 with the balance to be settled in due course once agreed or assessed.
The potential cost liability had already been provided for by the Company in its cash flow forecasts and will not have any material impact on LGO's ongoing oil production programs in either Trinidad or Spain. The Company's oil operations are profitable and LGO has access, as previously announced, to the necessary working capital for the commencement the 30 well development program planned for its 100% owned Goudron Field in Trinidad.
The Company advises that it still expects the Well Services No 20 rig to mobilise to Goudron around the 15th April. The Company will update the market on any appeal and on drilling operations as these occur.
Enquiries:
Leni Gas & Oil plc
David Lenigas Neil Ritson | +44 (0)20 7440 0645 |
Beaumont Cornish Limited
Nomad and Joint Broker Rosalind Hill Abrahams Roland Cornish | +44(0) 20 7628 3396 |
Old Park Lane Capital Plc
Joint Broker Michael Parnes | +44(0) 20 7493 8188 |
Pelham Bell Pottinger
Financial PR Mark Antelme | +44 (0) 20 7861 3232 |
Henry Lerwill |
Competent Person's Statement:
The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc, who has over 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers (SPE), an Active Member of the American Association of Petroleum Geologists (AAPG) and is a Fellow of the Geological Society of London.
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