29 Sep 2021 07:00
29 September 2021
Victoria Oil & Gas Plc
("VOG" or the "Company")
UNCITRAL Arbitration Update
Victoria Oil & Gas Plc, whose wholly owned subsidiary, Gaz du Cameroun S.A. ("GDC"), is the onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to provide an update on the dispute with RSM Production Corporation ("RSM") and the arbitration proceedings under UNCITRAL rules (dating from February 2020), details of which have previously been disclosed, most recently in the Company's Annual Report Accounts to 31 December 2020. RSM is our joint interest owner in the Logbaba Project in Cameroon with a 38 percent working interest, alongside the Company and the National Hydrocarbons Corporation of Cameroon.
VOG and RSM have now reached a settlement agreement which has enabled the parties to dismiss the UNCITRAL hearing which was due to commence this week in London. The settlement involves the agreement of certain accounting policies and procedures, the clarification of certain decision-making processes, and an agreement on the amount of monies payable to RSM in line with their existing contractual arrangements from existing cash resources in country. This hearing and the inevitable follow-up would have likely cost the Company a substantial amount in legal costs alone, whilst the amounts under dispute were material.
ICC Arbitration
The settlement of the UNCITRAL arbitration is without prejudice to all claims pending in the ICC arbitration Case No. 23991/MK. The ICC arbitration hearing took place in April of this year, and the ICC has yet to issue its Award.
Roy Kelly, Chief Executive of the Company, commented:
"We are delighted to have settled this dispute and avoid yet another hearing, this time under UNCITRAL rules, and thus avoid the unnecessary expenditure of time, cost and human resources both during the hearing and the inevitable follow-up. This removes another legacy issue and overhang on the company and allows management to concentrate on more value-enhancing activities.
We are very grateful to RSM for engaging so constructively and decisively on this matter, demonstrating the benefit of direct dialogue."
The information contained within this announcement is deemed to constitute inside information pursuant to the EU (Withdrawal) Act and amended pursuant to Market Abuse (Amended) (EU Exit) Regulations 2019. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Roy Kelly/Rob Collins Tel: +44 (0) 20 7921 8820
Strand Hanson Limited (NOMAD)
Rory Murphy/James Dance Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Broker)
Mark Percy / Toby Gibbs (corporate advisory) Tel: +44 (0) 207 408 4090
Jerry Keen (corporate broking)