(Alliance News) - Victoria Oil & Gas PLC on Friday said wholly-owned subsidiary Gaz du Cameroun has received all USD5.1 million owed by Camaroon-based electric company Eneo Cameroon SA after reaching a settlement in April.
In April, Gaz du Cameroun, which operates in Cameroon, signed a settlement agreement with Eneo relating to take-or-pay invoices for October, November and December in 2019, plus the associated interest.
Gaz du Cameroun has now received USD5.1 million from Eneo, representing full and final settlement for all amounts invoiced to Eneo.
Chief Executive of Victoria Oil & Gas, Roy Kelly, said: "We are very pleased to bring the Eneo episode to a close, and the funds significantly strengthen [Gaz du Cameroun]'s working capital position. In addition to the funds received, [Gaz du Cameroun] gains valuable tax credits which will be used to enhance cashflow."
Kelly added that Victoria Oil & Gas is also "grateful" and "excited about the exploration prospects" at the Matanda block in Cameroon after an environmental and social impact assessment report approved Gaz du Cameroun's plans to drill an exploration well at the site. The report was issued by Cameroon's Ministry of Environment, Protection of Nature & Sustainable Development and the Ministry of Mines, Industry & Technological Development.
In April, Victoria Oil & Gas signed a non-binding agreement with a potential buyer of ZAO SeverGas-Invest, who owns the West Medvezhye natural gas field in Russia. The unnamed buyer's period of exclusivity ended on May 31. Discussions regarding the sale continue.
Settlement discussions continue with the Government of Kazakhstan as Victoria Oil & Gas attempts to overturn its 2009 decision to revoke the company's licence to operate the Kemerkol oil field. Victoria Oil & Gas's website notes that the company has "minimised" the importance of the Kemerkol asset in their portfolio as a result.
Shares in the London-based company were trading up 9.1% at 6.00 pence each in London on Friday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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