Seplat Petroleum Development Company Plc issued a press release on Friday informing the market that Crestar Natural Resources Limited had taken it to court over the planned acquisition of OML 25.
According to Seplat, proceedings commenced in the English High Court against its wholly owned subsidiary, Newton Energy Limited, by Crestar Natural Resources Limited relating to the deposit of US$20.5 million currently held in an escrow account.
It further explained that the Escrow Monies related to the potential acquisition of an interest in OML 25 by Crestar, which Newton has an option to invest into, and were put into escrow in July 2015 ahead of the planned consummation of the deal. The press release did not provide further details explaining what the case really is against Seplat and why Crestar is suing. However, it appears the bone of contention is the escrow monies and its application considering that the deal, which started in 2014, is yet to be concluded.
Here is the full press release below;
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