Victoria Oil sales rise as it works to resolve RSM dispute

22nd Jul 2022 12:55

(Sharecast News) - Victoria Oil & Gas, whose wholly-owned subsidiary Gaz du Cameroun (GDC) had operations located in the Cameroonian port city of Douala, updated the market on its second quarter on Friday.

The AIM-traded firm reported average daily gross gas sales for the quarter of 5.6 million standard cubic feet, up 2% on the first quarter.

A gross volume of 4,243 barrels of condensate, meanwhile, was shipped to customers, down from 4,691 barrels quarter-on-quarter.

At Matanda, rig contract negotiations were continuing, and the mobilisation of a rig to Douala was expected to be complete by the end of July, at the owner's own cost and risk.

Site and access preparations would be "somewhat hindered" by the rainy season at this time of the year, the board said.

On the corporate front, as it announced on 4 April, along with a partial final award, the tribunal directed GDC and RSM to confer regarding the proposed procedure for resolution of costs and attorney's fees, with a target date for resolution of 30 June.

The Arbitration Panel and the International Chamber of Commerce were still evaluating a number of issues connected to the proceeding, including costs, and as a result the chamber had extended the time limit for rendering the final award until 31 December.

Victoria said it was continuing settlement discussions with RSM, with a view towards achieving resolution and a "commercially realistic settlement" in a more timely manner, and in lieu of the Arbitration Panel and ICC resolving the issues on behalf of the parties.

"Demonstrating that it really is business as usual in Cameroon, we are very pleased to report that GDC achieved a third consecutive quarter of gas sales growth, with this growth being largely organic," said chief executive Roy Kelly.

"Following the Arbitral award against GDC at the start of the quarter, we continue to work with RSM to seek a post-award commercial settlement."

Shares in Victoria Oil & Gas remained suspended from trading.

Reporting by Josh White at Sharecast.com.