Victoria Oil & Gas has signed a confidential settlement with its subsidiary Gaz du Cameroun to resolve all unresolved issues regarding the initially announced Reserve Bonus Payment Agreement and a 1.2% royalty due pursuant to the Contingent Payment Agreement (CPA).

The CPA was agreed on before Victoria Oil &Gas’ involvement in the Logbaba Gas Project.

GDC owns a 60% participating interest and operates the onshore Logbaba Gas Project under its C38 Exploitation Licence. The Logbaba Gas Project supplies cost effective, clean and reliable natural gas to industries in the Douala region of Cameroon.

Victoria Oil and Gaz du Cameroun were in disagreement over the timing and significance of the Reserve Bonus. Gaz du Cameroun later agreed to a global settlement and decided to scrap the CPA including all claims in arbitration and termination of the Reserve Bonus.

“We are very pleased with the settlement, which draws to a conclusion an area of uncertainty within the business, without putting undue pressure on the Group’s financial resources. The termination of the CPA as part of the settlement is a significant benefit to shareholders in terms of future profitability. The Board and I continue to look for areas to take costs out of the business and improve returns for shareholders,” Ahmet Dik, Victoria Oil’s chief executive told Energy Voice.

Anita Fatunji