An order directing Mir Oil Development Limited (MODL) to transfer 73 million unsold Bula Resources shares held by Mir back to Bula was granted by the High Court yesterday.
The granting of the order is one of the conditions of settlement of legal proceedings between Bula and its former chairman, Mr James Stanley. Another condition involves a certain unspecified event happening on December 22nd next.
Last month, Mr James O'Callaghan, for Bula Resources Holdings (Limited), said a settlement had been entered into by Bula and Mr Stanley but was dependent on a legal application to be made yesterday December 11th and another event on December 22nd.
Bula's claim against Mr Stanley and MODL arose out of an oil deal in Russia negotiated by Mr Stanley.
In 1998, the High Court was told that, through the use of deliberately falsified oil production results, Mr Stanley had set up Bula to invest £12 million (€15.2 million) in a "dud" oil well from which it would never see any return.
In a report by Mr Lyndon MacCann, the inspector appointed by the Minister for Enterprise, Trade and Employment to investigate the deal, Mr MacCann found Mr Stanley was the beneficial owner of MODL and that he had profited by some £660,000 sterling (€1.09 million) from the sale of Bula shares transferred to MODL.
In court yesterday, Mr O'Callaghan said his application was for an order transferring the 73 million shares in Bula held by MODL back to Bula.
He said the matter had been before the court several times and MODL had never appeared. He was seeking judgment in default of appearance. It was unlikely a defence would be entered. He added that MODL was registered in the British Virgin Island and was struck off on May 31st 1999 for failure to pay licence fees.
Mr Justice O'Neill said Bula was entitled to judgment against MODL for the shares in question.
He directed that the 73 million unsold Bula shares issued to MODL on foot of an agreement of August 18th 1995 be granted to Bula.
