Ratio Oil Exploration sued by geologist

Yossi Langotsky: Ratio used information about the Leviathan structure in breach of confidentiality agreement.

Geologist Yossi Langotsky, Tamar Oil Exploration Ltd., and LYA Explorations Ltd. have sued Ratio Oil Exploration (1992) LP (TASE:RATI.L) with the Central District Court in Petah Tikva, just before Ratio and its partners in the Leviathan leases are due to announce preliminary findings from the exploratory well. Ratio owns 15% of Leviathan.

The claimants claim that, in 2004, they gave Ratio geologist Eitan Eisenberg business information that lead to the understanding that there was a good chance of finding commercial quantities of oil and gas in the deep water area offshore from Israel's northern coast.

The claimants allege that the respondents signed a confidentiality agreement about this information when it was delivered. The claimants allege that the respondents failed to maintain confidentiality of the information and used it when applying for an early permit with priority rights for the Ratio Yam licenses in the Gal B area, in breach of the confidentiality agreement and commitment not to use the information.

Ratio said that it regrets the odd actions by Langotsky, who has waged legal battles against previous business partners in Tamar Oil Exploration. "Langotsky has no, and has never had, any relationship with Ratio Yam or the Leviathan structure," said Ratio.

Ratio's share price rose 0.2% by mid-afternoon to NIS 0.416, giving a market cap of NIS 2.85 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on November 7, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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