Bula Resources plc has issued High Court proceedings against its former chairman, Mr Jim Stanley, and Mir Oil Development Ltd. Bula is seeking various reliefs, including a claim for damages against Mr Stanley and Mir Oil.
"This legal action arises from Bula's investigation of the transaction with Mir Oil in September 1995 by which Bula acquired 25 per cent of Mir Space International Ltd and its rights to the Salymskoye oilfield in Western Siberia," the company said in a statement.
Mr Stanley negotiated the deal on behalf of Bula. He told the board at the time that the owner of Mir Oil was a South African businessman, Mr Charles Ellis. However, Mr Charles Lloys Ellis, a South African acquaintance of Mr Stanley's, has denied any involvement. A government inspector is, among other issues, trying to establish the beneficial ownership of Mir Oil.
"Bula's rights to 25 per cent of Mir Space and the additional rights given to Bula as a result of its agreement with Mir Oil are unaffected by the issuance of the High Court proceedings," the company statement said.
"Bula remains committed to the future development of the Salymskoye oilfield," the company statement said. However, the company's Russian partners, KMNGG, have said they wish to negotiate an end to their relationship with Bula.
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