Victoria Oil & Gas PLC - London-based oil and gas company - Suspends from trading following the conclusion of legal proceedings between its wholly-owned subsidiary Gaz du Cameroun SA and RSM Production Corp. The legal proceedings have been ongoing since 2018 and concern their joint-venture.
The International Chamber of Commerce rules against GDC with regards to claims made by RSM, largely about the dates of royalty payments. The tribunal orders USD12.1 million be paid to RSM by GDC as a partial final reward. Other claims against GDC concerning drilling costs were rejected, Victoria notes.
According to the arbitration rules, this ruling cannot be appealed and a payment must be made without delay. Victoria says neither itself nor its subsidiary has the means to make the payment without delay, which prompts the decision to suspend trading until the "fundamental uncertainty" resolves.
"The tribunal's findings are of course disappointing, to say the least, but they cannot be appealed and we must deal with the consequences and move forward...The current management made huge strides towards improving the relationship with RSM...The board thus has confidence in the management to navigate through this legacy issue and return the company to a healthier footing," says Non-Executive Chair Roger Kennedy.
Current stock price: suspended, closed at 3.73 pence on Friday
12-month change: down 21%
By Elizabeth Winter; elizabethwinter@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.