21 Feb 2020 07:00
21 February 2020
Victoria Oil & Gas Plc
("VOG" or the "Company")
RSM and VOG Arbitration
Victoria Oil & Gas Plc, whose wholly owned subsidiary, Gaz du Cameroun S.A. ("GDC"), the onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, provides shareholders with an update on the status of arbitration between the Company and RSM Production Corporation ("RSM"), GDC's partner in the Logbaba concession with an 38% non-operated interest.
The Company previously informed the market that, on 22 July 2016, RSM had filed a request for arbitration with the International Chamber of Commerce ("ICC") pursuant to the Operating Agreement between the parties regarding the rig and drilling contractor selected by GDC to conduct the drilling of two new wells at the Logbaba project. In January 2019, the subject of the claim was withdrawn on condition that RSM pay GDC's costs, which it did.
In another ICC arbitration filed in October 2018, which RSM amended in August 2019, RSM is asserting material claims primarily related to final invoices for the drilling of the two wells, La-107 and La-108, and certain audit exceptions raised by RSM following audits of the Logbaba operations between 2015 and 2018. RSM has made two attempts to obtain interim rulings which GDC has successfully defended and the substantive matter is currently scheduled for hearing at the end of January 2021.
Separately, on 3 February 2020, RSM filed an arbitration application under UNCITRAL Rules pursuant to a Participation Agreement for the project. Much of the relief sought in this second arbitration duplicates the new claims in the ICC arbitration save that it also challenges the validity of cash calls GDC issued in November 2019 for RSM's share of expenses in relation to the La-108 well remediation (in aggregate $2.9m) and raises issues relating to the primacy of the underlying governing documents relating to the Logbaba project, and the process of approvals for certain actions of GDC as the Operator on the Logbaba project. This arbitration will be heard in London under Cameroon Law.
Arbitrations under ICC and UNCITRAL rules are confidential processes. VOG is not permitted to provide detailed comments on them, beyond saying that it continues to vigorously defend the claims raised by RSM.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Ahmet Dik Tel: +44 (0) 20 7921 8820
Kate Baldwin
Strand Hanson Limited (Nominated and Financial Adviser)
Rory Murphy / James Dance / Jack Botros Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Broker)
Mark Percy / Toby Gibbs (corporate finance) Tel: +44 (0) 20 7408 4090
Jerry Keen (corporate broking)
Camarco (Financial PR)
Billy Clegg Tel: +44 (0) 20 3757 4983
Nick Hennis Tel: +44 (0) 20 3781 8330