Leni Gas & Oil has sold its minority interest in the offshore frontier Malta, Area 4 petroleum sharing contract.

LGO subsidiary Leni Gas and Oil Investments has agreed to sell its 10 per cent interest in the PSC to Phoenicia Energy Co, a subsidiary of Mediterranean Oil and Gas which currently holds a 90 per cent interest.

PECL will pay LGOI a consideration of $1 for the interest with an effective date of 1 January 2012.

In addition, PECL will assume liability for LGOI’s residual costs arising under the joint operating agreement between the parties associated with the acquisition of 3D seismic data in 2011 estimated to be $20,000.

The carrying value of the interest is £1.9 million, which will now be written off.

LGO chief executive Neil Ritson said: “LGO has decided as a result of its own technical assessment of the project to divest, at no further cost, its interest in the Malta venture which is both non-core and non-strategic to LGO+s onshore oil development mission.

“This divestment will allow us to avoid any further expenditure on Malta and to focus our management and cash resources on our core business of production growth in Trinidad.”