Victoria Oil & Gas PLC RSM and VOG Arbitration (1867I)
August 26 2016 - 2:00AM
UK Regulatory
TIDMVOG
RNS Number : 1867I
Victoria Oil & Gas PLC
26 August 2016
26 August 2016
Victoria Oil & Gas Plc
("VOG" or "the Company")
RSM and VOG Arbitration
VOG notes a recent media article in Cameroon and can confirm
that on 22 July, 2016, RSM Production Corporation ("RSM") filed a
request for arbitration with the International Chamber of Commerce
("ICC") regarding the rig and drilling contractor selected by VOG
to conduct the drilling of two new wells at the Logbaba project.
Separately, on 29 July, 2016, RSM filed a complaint and application
for injunction with the U.S. District Court for the Southern
District of Texas in which RSM sought a temporary court order to
halt the drilling operations while the arbitration proceeds. On 12
August 2016, VOG and its subsidiary, Gaz du Cameroun, responded to
RSM's application for injunction, pointing out that RSM has
approved the operations (including the rig and drilling
contractor), the rig was in Cameroon being assembled, and therefore
an injunction was not warranted. On 16 August, 2016, RSM withdrew
the request for injunction and dismissed its complaint.
The arbitration is still pending. Arbitration in the ICC is a
confidential process, VOG is not permitted to comment on it, beyond
saying, as it did in its response to RSM's application for
injunction, that RSM approved the 2016 Work Program and Budget
including the drilling program in question and there is no basis to
challenge the choice of the rig or drilling contractor.
Activity on the approved 2016 Work Program and Budget continues
with spudding of the two wells imminent. GDC is well placed to
continue funding these operations and the drill program with
project revenue and bank debt until such time as the arbitration
with RSM concludes.
This Regulatory News Announcement contains inside
information.
For further information, please visit www.victoriaoilandgas.com
or contact:
Victoria Oil & Gas Plc
Kevin Foo / Laurence Read Tel: +44 (0) 20 7921 8820
Strand Hanson Limited (NOMAD)
Stuart Faulkner / Rory Murphy Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Joint Broker)
Mark Percy / Toby Gibbs (corporate finance) Tel: +44 (0) 207 408
4090
Jerry Keen (corporate broking)
FirstEnergy Capital LLP (Joint Broker)
Jonathan Wright/David van Erp Tel: +44 (0) 207 448 0200
Bell Pottinger
Daniel Thöle / Charles Stewart / Zara de Belder Tel: +44 (0) 20
3772 2499
Notes to Editors
About Victoria Oil & Gas Plc
Victoria Oil & Gas (VOG.L) is a gas utility company.
The Company's subsidiary, Gaz du Cameroun S.A. ("GDC") owns a
60% participating interest and operates the onshore Logbaba Gas
Project. The Logbaba Gas Project supplies cost effective, clean and
reliable natural gas to industries in the Douala region of
Cameroon. RSM Production Corporation, an affiliate of Grynberg
Petroleum Company of Denver, Colorado holds the remaining 40%
participating interest. In addition, VOG has recently been assigned
a 75% participating interest in the Matanda block, which neighbours
the Logbaba block. The remaining 25% participating interest is held
by AFEX.
VOG also holds 100% of the West Medvezhye oil and gas
exploration project near Nadym, Russia. Given the challenging
economic environment in Russia, The Group has fully impaired the
West Medvezhye assets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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