Petroceltic hits out at blog claims

As part of a long-running dispute over management of the company, Worldview made a failed attempt in January to oust Chief Executive Brian O’Cathain from the board.

Petroceltic shares closed down 7.4% to 50.00 pence Thursday.

Last month a number of serious allegations were published on a WordPress.com blog around the oil and gas exploration company, specifically relating to its Ain Tsila project in Algeria.

The letter also contained a number of questions addressed to Petroceltic, which are aimed at clarifying the situation, as well as shedding light on what the company has done to investigate the allegation and Stevenson’s role in the matter.

Worldview, a Swiss hedge fund which holds a 29pc stake in Petroceltic, says that it is concerned that the claims suggest that shareholder value may have been compromised.

Petroceltic reacted to Worldview’s letter later on Thursday, saying the allegations were based on reports published by an anonymous blogger.

On the basis of this, Petroceltic said it considers the allegations to be “entirely baseless, untrue and defamatory”.

Petroceltic said the court ordered the blog’s host, Automattic, to immediately delete the blog and not allow any further posts from the blogger. If no such evidence is forthcoming, the Company will take appropriate legal action against any party who has made or repeats such defamatory statements in order to protect the good name and reputation of Petroceltic, its staff and consultants. The court also ordered that the blogger be identified, the company said.

Worldview has offered Petroceltic a resolution, which would see the oil and gas explorer seeking approval from shareholders for any asset disposals which represents 25% or more of the company’s revenues and profits. Worldview has called the proposed bond deal “perilous to shareholders”.