July 5 Petroceltic International Plc
said it started legal proceedings against two parties
with whom the company's previous board had entered into service
and consultancy agreements related to its North African business
The Irish oil and gas company said it had initiated the
legal action in the High Court of Ireland after receiving
correspondence threatening legal proceedings against it from one
of the parties seeking payment of $3.4 million.
The agreements, dating back to 2004 and 2005, contain
provisions under which the parties could make claims for further
material payments from the company, Petroceltic said in a
Petroceltic, whose operations are focussed on North Africa,
and the Mediterranean and Black Sea regions, said it believed
that the original agreements constituted a fraud on the company
and had issued legal proceedings to have them declared void.
Shares in the company were down about 2 percent at 132.5
pence in early trading on Friday on the London Stock Exchange.