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Victoria Oil & Gas subsidiary reaches settlement with Eneo
StockMarketWire.com
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Oil company Victoria Oil & Gas (VOG) said its subsidiary Gaz du Cameroun (GDC) has reached a settlement agreement with Eneo, avoiding litigation or arbitration.
The onshore gas producer and distributor with operations located in the port city of Douala, Cameroon signed a settlement agreement with Eneo on 16 April 2021, which will result in the payment of the gross amount to GDC, within 30 days of the signing, of approximately 2.74 billion FCFA (Central African CFA franc), which is approximately $5 million.
This settlement relates to the 'take-or-pay' invoices for October, November and December 2019 plus associated interest, during which time the invoices were being issued, gas was not being supplied to Eneo 'because there was no demand'.
When the contract was terminated with Eneo in July 2020, VOG had 10 take-or-pay invoices outstanding.
Following the settlement, the company has now recovered four out of 10 of these outstanding invoices plus interest to February 2021.
Chief executive Roy Kelly said: 'We are very pleased to have settled another legacy issue without recourse to time-consuming and expensive litigation or arbitration, as such legal costs have been crippling the company in recent years. Arbitration would be under Cameroonian law and could take several years.
'We believe the avoidance of further legal costs in pursuit of the Eneo receivables is in the best interests of shareholders and partners, and allows management to focus on the business and strategy.'
At 1:58pm: (LON:VOG) Victoria Oil Gas PLC share price was 0p at 6.4p
Story provided by StockMarketWire.com
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