Leni Gas and Oil Investments Limited (“LGOI”), a subsidiary of LGO, has agreed to sell its interest in the PSC (“Interest”) to Phoenicia Energy Company Limited (“PECL”), a subsidiary of Mediterranean Oil and Gas plc (“MOG”) to acquire the 10 per cent interest LGOI holds in the PSC.
MOG hold a 90 per cent interest and operate the PSC and following the completion of the sale, MOG will hold the entire interest in the PSC.
PECL will pay LGOI a consideration of USD1 for the Interest with an effective date of 1 January, 2012. In addition, PECL will assume liability for LGOI’s residual costs arising under the Joint Operating Agreement between the Parties associated with the acquisition of 3D seismic data in 2011 estimated to be of the order of USD20,000 for the to end-2011. The carrying value of the Interest is £1.9 million which will now be written off.
Neil Ritson, LGO Chief Executive, commented:
“LGO has decided as a result of its own technical assessment of the project to divest, at no further cost, its interest in the Malta venture which is both non-core and non-strategic to LGO’s onshore oil development mission. This divestment will allow us to avoid any further expenditure on Malta and to focus our management and cash resources on our core business of production growth in Trinidad.”
Press Release, August 1, 2012