Explorer Petrel gets wider injunction to block sale of shares

Company says director agrees to stand aside from his duties as investigation continues

Petrel managing director David Horgan.  Photograph: Brenda Fitzsimons

Petrel managing director David Horgan. Photograph: Brenda Fitzsimons

 

Oil and gas exploration company Petrel Resources has secured a wider injunction as it looks to block certain investors from unlawfully selling any newly-issued shares in the company.

In a statement the company said the injunction secured on Friday “now blocks all trading in the locked-in shares pending a full hearing and/or a full resolution to the satisfaction of the board”.

It said the application had not been contested either by Chase Nominees, the legal owner of the shares, nor Michel Fayad and Said Mehraik, whom Petrel claims are among the beneficial owners. The two men were in court and Chase was represented, it said.

Petrel said Mr Fayad had agreed to step aside from his director’s duties for the time being, “pending satisfactory resolution of all outstanding issues to the satisfaction of the board”. He remains a director of the business.

Petrel claims it entered an investment agreement last year with individuals who are experts in the area of fossil fuel exploration, believing that was a long-term agreement aimed at expanding its businesses.

As part of that deal, Petrel claims, the investors entered into a “locked-in” agreement not to sell any of their shares until August 2020.

Earlier this month Petrel said it discovered its shares have been unlawfully traded in breach of regulatory rules. It claims the investors will not answer basic questions or provide straightforward information to explain why the allegedly unlawful trades have taken place.

Its action is against Roger Edward Tamraz of United Arab Emirates, as well as Mr Fayad and Mr Mehraik, who both live in France.

It is claimed the three are beneficial owners of shares in the company, which is led by David Horgan and chaired by John Teeling.

Chase Nominees Ltd, the alleged legal owner of the shares, is also a defendant.