Russ Oil-Gas

05-22-2006 – Moncrief Oil International, a privately held Texas-based oil company, has informed Wulf Bernotat, CEO of E.ON, that it plans to sue E.ON for $8 million damages should E.ON and Gazprom agree that E.ON gets a stake in the Yuzhno-Russkoye gas field in Western Siberia. Moncrief said this would constitute interference with its exclusive rights to 40% of the field which Gazprom awarded to it ten years ago. Richard Moncrief, chairman of Moncrief Oil International said: "Gazprom has breached its contracts with Moncrief, causing us significant financial loss and we are determined to hold them accountable. We will therefore use the appropriate legal channels to pursue any company that wrongfully interferes with our deal." Last Tuesday Moncrief Oil said it will start legal proceedings in the German courts against BASF for "interference in Moncrief's deal with Gazprom". BASF signed agreements with Gazprom last month to take a 35% share in the Yuzhno-Russkoye field in return for boosting Gazprom's presence in German and European gas marketing. Moncrief Oil said it signed a series of contracts with Gazprom and its subsidiaries in 1997 and 1998 that gave it an exclusive 40% ownership interest in the Yuzhno-Russkoye field in exchange for providing at least $800 million in equity and debt financing to develop it.