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Moncrief Oil International Files New Suit Against Gazprom in Texas.

Posted on: Thursday, 3 April 2008, 06:00 CDT

The Russian Ministry of Justice impedes service of the claim for damages filed against Gazprom with the Landgericht (Regional Court) of Berlin. Medvedev's most recent statements on the state of lawlessness in Russia are hardly suited to console the plaintiff.

Berlin, Fort Worth, April 3rd, 2008. The Texan family-owned Moncrief Oil International has once again filed suit against the Russian energy conglomerate OAO Gazprom in connection with ownership of the Western Siberian Yuzhno-Russkoye gas field. The claim for damages was filed with the District Court of Tarrant County, Texas on April 3rd, 2008 and is based on new evidence of Gazprom's use of confidential information and an attempt to influence the outcome of Moncrief's original claim in US court.

The Texas-based company has obtained evidence that during the course of the proceedings, Gazprom used confidential information and exerted influence on an important industry partner of Moncrief demanding that the partner use its influence with Moncrief to pressure Moncrief to drop the ongoing litigation. When the industry partner informed Moncrief of the incident, it requested Moncrief not to introduce the matter into the original court proceedings out of concern that the interests of its shareholders would be damaged since it owned significant assets in Russia. Today, the partner has sold the Russian assets and no longer objects to Moncrief using the incident in a new court procedure against Gazprom.

As early as in 2005, Moncrief had filed for damages against the Russian group in Texas with the District Court of Fort Worth. Both the court in Texas and the court of appeals in New Orleans held that they did not have personal jurisdiction over the case. The courts did not hear or pass judgment on the merits of Moncrief's claims.

Complaint against Gazprom before the Landgericht (Regional Court) of Berlin is not affected - service of the documents on Gazprom has been impeded

After the courts in the USA denied jurisdiction, Moncrief Oil International transferred its rights and claims on the Yuzhno-Russkoye gas field to its subsidiary Moncrief Oil International (Deutschland) GmbH, which then filed a new complaint for damages against OAO Gazprom with the Berlin Landgericht (Regional Court) in early October of 2007. This action in the Berlin Court is not affected by the new action in Texas. The claims filed by Moncrief in the Berlin court amount to US $ 12 billion. Moncrief's hopes that progress would be swift in Berlin Landgericht (Regional Court) have not been fulfilled. According to information issued recently by the Berlin court, simply serving the complaint documents on Gazprom in Moscow, could take until 2009. The Russian Ministry of Justice may delay the service of German court documents at its discretion and is currently making use of this option.

"Up to the present day, Gazprom has not terminated our agreement concerning the Yuzhno-Russkoye gas field, neither expressly nor by implication, which means that it is continuing to act in violation of the law. It is small consolation that the future Russian president Dmitry Medvedev has recently stated in the Financial Times that there is a chronic failure in Russia to observe the law, also going into the legal nihilism of the country. Now that the Russian Ministry of Justice itself is blocking the service of our complaint to Gazprom in Russia, we are once again placing our hopes a) that the Berlin Court will agree with our petition to take available remedies to accelerate the process of formal service of the claim on Gazprom and now b) on the new court proceedings in Texas which will take place in parallel. We will not give up until we have our day in court", stated Richard W. Moncrief, the founder and owner of Moncrief Oil International.

Background:

In 1997 and 1998, Moncrief concluded several agreements with a Gazprom subsidiary for the development of the Yushno Russkoye gas field. Moncrief was granted an exclusive minority ownership interest of 40 % in the Yushno Russkoye gas field. In return, Moncrief supplied the Gazprom subsidiary with its technical know how and business plans and stood ready to provide for private equity as well as to arrange for debt finance from western financial institutions. In the lawless period of 1999-2000 in Russia from 1999 to 2000, Gazprom executives stole the gas field from Gazprom. It was only when Vladimir Putin was elected President that Gazprom regained control of the Yuzhno Russkoye field. The Putin administration assured Moncrief that it could quickly resume work on the field with Gazprom and two Vice Chairmen of the Gazprom Management Board. Boris Yurlov and Alexander Riazanov so notified the US government in November of 2002.

Gazprom executives stalled Moncrief however, despite the assertions of the Putin administration. Then in 2004 during discussions of the approved contract, Gazprom suddenly demanded higher compensation for the participation of Moncrief. Since a Memorandum of Understanding was signed between Gazprom and BASF in May of 2005, Gazprom has refused to fulfill its contracts with Moncrief.

About Moncrief Oil

Moncrief Oil International is owned by Richard W. Moncrief, a third generation principal and philanthropist of Moncrief Oil which is one of the largest oil and gas exploration and production companies in the United States that is still family-owned and has its headquarters in Fort Worth, Texas. In its 75 year history, Moncrief Oil has been one of the most successful, independent, privately-owned oil and gas-producers in the US. The company often and regularly collaborates with all of the major oil producers in the United States. Moncrief Oil is credited with the discovery and development of numerous significant oil and gas fields in various states in the United States. Under the leadership of Richard W. Moncrief, Moncrief Oil International Inc. has also been active in many countries outside of the United States, such as Russia, Azerbaijan, Kazakhstan, Israel, Indonesia and in various African nations. Richard W. Moncrief is also the chairman of the ALL AMERICAN WILDCATTERS, an exclusive organization of American oil and gas explorers and producers. In the course of his career, he was a director of the independent Petroleum Association of America, and of the Texas Commerce Bank.

For further information please contact:

 Results: S. Holzinger! GmbH Speaker: Stephan Holzinger contact@results-holzinger.de www.results-holzinger.de Telephone: +49 (0) 175 59 30 897 

Party responsible according German press law : Richard W. Moncrief, Chairman and CEO of Moncrief Oil International, 301 Commerce Street, Suite 3600, Fort Worth, Texas 76102, Tel. 001 817 348 8454, Fax 001 817 348 8484.

Exclusion of liability: Although Results: S. Holzinger! GmbH exercises due care and has regular controls in place, it will not accept to be held liable for the information provided in the present press release being complete, correct or up-to-date, nor will it guarantee that it is so complete, correct and up-to-date.

Copyright Copyright Hugin AS 2008. All rights reserved.

SOURCE: Moncrief Oil International

Source: MARKET WIRE

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