Greymouth stoush back in court

Greymouth Petroleum CEO Mark Dunphy (left), and former chief operating officer John Sturgess, pictured here together in 2007.

Oil and gas company Greymouth Petroleum Holdings wants more than $830,000 in damages from a former director who was ordered by the High Court to sell his stake in his firm.

Greymouth Petroleum's former chief operating officer and director John Sturgess fell out in 2010 with board members and fellow shareholders, Peter Masfen and Mark Dunphy.

In August 2011 the pair launched High Court action against Sturgess which made complaints about his conduct.

Dunphy and Masfen sought orders that Sturgess' interests sell their minority stake in the Greymouth group and sought damages for the now-former director's alleged negligence.

After a seven-week trial Sturgess - and interests associated with him - were ordered to sell their shares at fair market value by Justice Murray Gilbert in 2013.

Although his colleagues on the board complained about Sturgess' actions at a string of the company's wells and exploration projects, Justice Gilbert found him negligent in only two instances.

He ordered the former director and a management company associated with him to pay damages to Greymouth Petroleum for some of the costs of these two operations. The parties were back in the High Court at Auckland yesterday arguing over the damages.

The company's lawyer, Mark O'Brien, told the Herald that Greymouth Petroleum was seeking around $830,000 in damages, plus interest.

A lawyer for Sturgess' company, Marc Corlett, indicated the director did not believe he was liable for damages at all.

It is understood that any damages payable would be offset by outstanding management fees Sturgess won during the original trial.

The damages hearing was scheduled to continue today.

Sturgess and an associated family trust still hold their 14 per cent stake in the firm, according to the Companies Office.