A shock High Court Ruling made on Friday (but not announced) paves the way for a windfall gain of $9 million (or more) for AIM listed Leni Gas & Oil (LGO) at the expense of Cesspit listed Mediterranean Oil & Gas (MOG).
The background to the case is that on August 1st 2012 Leni sold its 10% stake in acreage known as Malta Area 4 Production Sharing Contract for $1 plus about $20,000 of historic expenses. Leni agreed to the sale on the basis that Mediterranean insisted that there was nothing going to happen to the block. On 23rd August Mediterranean sold 75% of the block to oil major Genel for an immediate cash payment of US$10 million
100% carry of the cost for the first exploration well Hagar Qim 1
100% carry of the cost for the second exploration well up to a maximum of US$30 million
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