World's Energy

04-24-2009 - Upstream OnLine - Victoria Oil & Gas has suffered a further blow in its legal battle over ownership of the Kemerkol oilfield in Kazakhstan, sending its shares down as much as 36% today. The AIM-listed oil and gas explorer said that a Kazakh lower court supervisory panel had decided not to refer a claim made against the company's Kazakh unit back to the court to be reconsidered. The claim disputes the transfer of the Kemerkol licence to Victoria's subsidiary in 2005. At 1219 GMT, Victoria Oil shares were down 20% at 3.75 pence on the London Stock Exchange, having touched a low of 3 pence earlier in the session. The supervisory panel made the decision despite a letter of protest last month from the Kazakh General Prosecutor supporting Victoria's appeal. Victoria said it was assessing the best course of action for a further appeal in Kazakhstan. "We will continue the fight until our rightful title to the Kemerkol field has been restored," chairman Kevin Foo said in a statement. Victoria had acquired the Kemerkol exploration and production licence in 2005. However, since 2008 production from the field has been suspended due to the legal challenge.