Victoria Oil & Gas Plc, ("VOG,") the AIM quoted oil and gas company announces that it has increased its effective working interest in the Logbaba gas and gas condensate field in Douala, Cameroon ("Logbaba Concession") to 95% following the serving of a Notice of Forfeiture on 18 July 2011 on RSM Production Corporation ("RSM") which previously had a 38% interest in the Logbaba Concession.
The activities at the Logbaba Concession are regulated by a number of legal agreements between VOG's 100% subsidiary Rodeo Developments Limited ("RDL") and RSM which cover various operating and legal matters including the obligation for RSM to meet appropriately evidenced cash calls raised by RDL for the costs of development and operation at the Logbaba Concession.
RSM failed to make payment under a cash call made on 15 June 2011, and a notice of default was served on 2 July 2011. As RSM failed to rectify the default, RDL has served Notice of Forfeiture in accordance with the Operating Agreement ("Agreement") between RDL and RSM. The effect of this is to require RSM to withdraw from the Agreement and transfer RSM's former interest to RDL.
As announced on 6 May 2011 Societé National des Hydrocarbures, ("SNH") has indicated that it intends to exercise its right to take a 5% participation in the Logbaba Concession, and will pay its share of development costs. Following the forfeiture VOG, through RDL, will have a 95% interest and SNH will have the remaining 5% interest.
Kevin Foo, Chairman of VOG commented, "We are disappointed to be in the position where we have had to take this step, but it is important for all participants to meet their obligations at Logbaba, not just VOG. We look forward to working with SNH to drive this project forward to first gas later this year."
For further information, please contact:
Victoria Oil & Gas Plc - Tel: +44 (0) 20 7921 8820
Kevin Foo / Martin Devine
Strand Hanson Limited - Tel: +44 (0) 20 7409 3494
Simon Raggett / Angela Peace
Fox-Davies Capital - Tel: +44 (0) 203 463 5000
Daniel Fox-Davies/ David Porter
Tavistock PR - Tel: +44 (0) 20 7920 3150
Ed Portman/ Paul Youens
Background Information on Victoria Oil & Gas Plc:
Victoria Oil & Gas is an independent oil and gas exploration and production company with projects in Africa and the FSU. The Company's principal assets are the Logbaba gas and condensate project in Cameroon and the West Medvezhye field in Siberia, Russia. Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s and all four exploration wells encountered gas. The Company drilled two successful development wells in 2009/10. West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent reserve audit estimated prospective resources for the field of over 1.1 billion barrels of oil equivalent.