MEC scoffs at whispers that BPH Energy is putting the moves on it
Energy investor MEC Resources is denying claims that it has received advances from BPH Energy.
“Neither MEC, nor investee Advent Energy Ltd, has received any credible proposal from BPH Energy Ltd to be party to Advent Energy Ltd’s operations,” MEC (ASX:MMR) told investors.
Shares dipped 4.51 per cent to 2.1c on the back of the clarification.
Neither MEC nor Advent is in talks with BPH in relation to the operations of Advent, the company added.
The rebuttal was released in response to “inaccurate media statements, advertising and/or matters discussed on personal calls shareholders and others may have received recently” from BPH or its associates.
MEC has an 8.3 per cent stake in BPH, which has investments in biotechnology and resources, including a 27 per cent interest in oil and gas explorer Advent.
In early October, MEC upped its stake in Advent to 47.06 per cent from 44.29 per cent after it subscribed for more shares in a placement.
MEC and BPH are currently embroiled in a dispute over $390,230 worth of unpaid loans. MEC is suing BPH for $270,000 and BPH is counter-suing for $388,050.
BHP did not take part in Advent’s placement earlier this year and remains a “shareholder only”, MEC noted.
“BPH Energy Ltd holds no other rights, authorities or ownership to petroleum titles held by Advent Energy Ltd.”
Earlier in December, Advent secured a farm-in partner for its 85 per cent-owned petroleum exploration permit 11. Private company RL Energy can earn up to a 60 per cent stake in the permit by completing seismic surveys over the project area.