QOGT Quorum Oil &Gas

 

TIDMQOGT 
 
RNS Number : 7140O 
Quorum Group of Companies 
02 July 2010 
 

 
QOGT Inc: Response to statement from Quorum Oil and Gas Technology Fund and 
commencement of legal proceedings 
 
2 July 2010 
QOGT Inc. ("QOGT") notes with concern the statement just released by Quorum Oil 
and Gas Technology Fund Ltd ("the Fund" or "The Company") and would like to make 
its position clear. 
QOGT was appointed as the principal of two Investment Managers of the Fund under 
an Investment Management and Advisory Agreement dated 27 December 2007 ("the 
IMA").  The Quorum Group, of which QOGT is a member, also holds a substantial 
minority interest in the other Investment Manager, Quorum European Partners LLP 
("QEP"), together with David Sefton who holds the majority interest. 
QOGT was centrally involved in both the concept and creation of the Fund, its 
successful IPO and the subsequent identification and acquisition of its 
investment portfolio. 
Since the IPO in 2008, QOGT has delivered a successful performance for the 
Fund's shareholders, including an increased Net Asset Value as at 31 March 2010. 
 
Further, QOGT has continued to fulfill all its duties under the IMA. Despite 
this, on 28 May 2010 the Fund wrote to QOGT and to QEP, purporting to give 
notice under the IMA of a breach thereof by both Investment Managers and 
requiring them to remedy the breach within 30 days. The alleged breach was that 
Investment Managers were "failing jointly to provide the Fund with investment 
management services in its best interests".  QOGT does not accept that any such 
breach has occurred, because the obligations under the IMA are joint and several 
and QOGT has been performing all of the investment management duties. 
QOGT believes this step was taken by the Fund as a result of an unwillingness on 
the part of Mr. Sefton, who at that stage was in dispute with the Quorum Group 
in relation to moneys owed by him to the Quorum Group, to work constructively 
with QOGT in the performance of the Investment Managers' duties under the IMA. 
QOGT has continued to work tirelessly in the Fund's best interests in the 
meantime and has also sought to encourage a more constructive approach from Mr. 
Sefton.  QOGT was therefore surprised and disappointed by the Fund's purported 
termination of the IMA by letter dated 1 July 2010 and its appointment of Mr 
Sefton (through QEP) as the Fund's sole Investment Manager. 
 QOGT has now been forced to consider its position with its legal advisers and 
reserves all its rights, including to claim damages from the Fund for unlawful 
termination of the IMA, or alternatively to serve its own notice of termination 
of the IMA with 3 years' notice, should it decide to affirm the IMA and not 
accept the Fund's repudiatory conduct. 
It is also the Quorum Group's intention to bring legal proceedings against Mr. 
Sefton personally in connection with the sums owed to it by him. 
QOGT regrets being forced into these actions, but feels after consideration that 
it has no choice, given what it considers to be the board's unreasonable actions 
and the potentially detrimental and reputational issues for QOGT which arise 
from those actions. 
- Ends - 
For further information: 
+--------------------+-----------------+ 
| Investment         |                 | 
| Manager            |                 | 
+--------------------+-----------------+ 
| Quorum             |                 | 
| Group              |                 | 
+--------------------+-----------------+ 
| Wanda              | Tel:            | 
| Dorosz,            | +1 416 971 6998 | 
| Managing           |                 | 
| Partner            |                 | 
| & CEO              |                 | 
+--------------------+-----------------+ 
| wdorosz@quorum.ca  |                 | 
+--------------------+-----------------+ 
 
Media enquiries: 
+-------------------------+--------------------+ 
| Maitland                |                    | 
+-------------------------+--------------------+ 
| Neil                    | Tel:               | 
| Bennett/Rowan           | +44                | 
| Brown                   | (0)                | 
|                         | 207 379 5151       | 
+-------------------------+--------------------+ 
| nbennett@maitland.co.uk | www.maitland.co.uk | 
+-------------------------+--------------------+ 
 
Notes to editors: 
Quorum Oil and Gas Technology Fund Limited ("Q-OGT") is a registered 
closed-ended investmtent company incorporated in Guernsey to provide expansion 
capital to companies which own and/or are developing proven proprietary 
technology which may have a potentially significant effect on the oil and gas 
industry. The Fund is jointly managed by the Quorum Group, a 23 year old 
strategic sector private equity firm, headquartered in North America; and by 
Sefton Partners LLP (formerly known as Quorum European Partners LLP).  Q-OGT was 
admitted to the Official List of the UK Listing Authority and to trading on the 
London Stock Exchange on 7 January 2008. Its stock market EPIC is QOGT.L. 
Further information can be found at www.q-ogtfund.com 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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