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Monday, January 27, 2014
Victoria Oil & Gas Plc (VOG) and its subsidiary Gaz du Cameroun SA (GDC) have signed a Settlement Agreement with RSM Production Corp. in relation to the Logbaba gas project in Cameroon operated by GDC.
Under the settlement agreement, the $16.3 million paid by RSM towards the cash call for expenses issued by GDC on December 23 with agreement for an audit to determine the final balance payable by or to be refunded to RSM. The audit will be undertaken by an independent auditor, jointly instructed in accordance with the terms of the operating agreement. The audit is to commence in Q1 2014.
VOG also reported that RSM’s Emergency Application to the ICC and Third Arbitration Request have been withdrawn. The Notices of Default served by GDC on RSM have also been withdrawn.
The 2014 work program and budget have been deemed approved by RSM, with RSM to pay its share of cash calls for 2014 in accordance with the parties’ operating agreement upon completion of the audit.
As announced on January 13, RSM sought the appointment of a new emergency arbitrator by the ICC to obtain an order protecting RSM from the consequences of default for non-payment of the pending 2013 Cash Calls. These cash calls were issued for RSM’s participating interest share of incurred expenses since July 2011 ($24,044,870) and an advance for January 2014 ($1,977,600).
Kevin Foo, Chairman said; “RSM have worked very constructively with us to find a solution. The agreement now allows all partners to concentrate on developing this outstanding asset.”
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