A British commercial court has thrown out a case filed by small oil firm Leni Gas & Oil against a former partner, Mediterranean Oil & Gas, over an exploration licence in Maltese waters.

Leni had instituted the case two years ago, days after Mediterranean Oil & Gas brought in big player, Genel Energy, to look for oil.

It claimed it was misled into selling its interest in Malta’s Area 4 PSC to Mediterranean Oil & Gas for $1. Soon after, Mediterranean Oil & Gas reached a $10 million farm-out agreement with Genel Energy.

We never doubted we would win

In a statement, Leni said London’s High Court decision had potential long-term and broad-reaching implications for all minority joint venture partners in the oil industry that needed and deserved robust legal protection to ensure their majority partners provided them with full information regarding the true value of the minority stake.

On the other hand, Mediterranean Oil & Gas chairman Keith Henry said the board was “delighted” by the court’s decision. “We never doubted we would win this case and Bill Higgs [the company’s CEO] would have his reputation as a straightforward businessman and honest person upheld.”

After buying Leni’s stake, Mediterranean Oil & Gas sold a majority stake in the block to Genel, a high-profile oil firm formed in 2011 when former BP chief executive Tony Hayward and financier Nathaniel Rothschild’s bid vehicle bought Turkey’s Genel Enerji.

Leni’s executive chairman David Lenigas previously chaired Mediterranean Oil & Gas.

Genel Energy, which has a market capitalisation of $3.02 billion, paid $10 million for a 75 per cent stake in the block and said it would fund the cost of drilling the first well on it plus the cost of drilling a second up to $30 million.