Victoria Oil & Gas said subsidiary Gaz du Cameroun S.A has entered into a confidential settlement that resolves all outstanding issues concerning the previously disclosed Reserve Bonus Payment Agreement and a 1.2% royalty due pursuant to the Contingent Payment Agreement agreed prior to VOG's involvement with the Logbaba Gas Project.
CEO Ahmet Dik said:
"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."