LGO Energy slumps amid dispute with Trinity Exploration

Shares in LGO slumped on Friday, after the oil and gas assets developer disputed allegations made by Trinity Exploration & Production earlier this week.

In its second quarter update, Trinity claimed the Tabaquite Block was currently classified as “held for sale” on its books, adding it had not received any profits from LGO.

In November 2014, the two companies signed a deal under which LGO committed to acquire Tabaquite Exploration & Production, which is set to receive a licence for the Tabaquite Block, from Trinity for $2m.

However, Trinity said LGO had breached the agreement and it was considering its options, refusing to rule out “legal remedies”, while LGO insisted it had previously notified Trinity about being in breach of agreement.

The group added it was reserving the right to take "any action it deems necessary" to protect itself and its shareholders' interests.

LGO shares were down 7.74% to 1.43p at 1130 BST on Friday.