Midwestern Oil Sued Over $20million Investment

One of Nigeria’s serial entrepreneurs and boardroom czar, Onajite Paul Okoloko, has been sued by a group of investors for allegedly converting their investments worth $20 million in Midwestern Oil & Gas Company Limited into a non-related transaction to fund his other investment deals with Eroton Exploration and Production Company Limited according to reports by Thisday. In a Writ of Summons filed at the High Court of Lagos State on March 17, 2017, the claimant, Salta Integrated Concept Limited listed as defendants Onajite Paul Okoloko, First City Monument Bank, Midwestern Oil & Gas Limited, Eroton Exploration and Production Limited and Guaranty Trust Bank in the alleged $20 million investment deal.

The affidavit in support of the claimant’s motion sworn to by a director of Salta, Akindele Ojo, submits that in December 2012, the claimant entered into an agreement worth $20 million to acquire five million shares of Midwestern Oil & Gas Limited (Midwestern) to partly finance the Reverse Takeover (RTO) of Mart Resources Inc., Canada. In addition, Salta alleged that in the event that the RTO fails, Midwestern Oil & Gas will refund the amount invested by Salta at prevailing interest rate.

Contrary to the executed agreement, only 4,702,970 units of the 5 million shares were issued to Salta by Okoloko. In the writ, Salta submits that Midwestern upon queries, claimed to have used the units left out to settle certain interests and individuals. Till date, these individuals are yet to be named by Okoloko and Midwestern Oil.

The plot against Salta got thickened when rather than use the $20million for the said purpose – RTO of Mart Resources, Midwestern oil diverted the funds from First City Monument Bank to a consortium that acquired OML 18 from Shell Petroleum through Eroton Investment.