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Victoria Oil & Gas PLC on Wednesday said it is attempting to finalise a settlement with RSM Production Co so that its shares can trade again, as operations continue at Logbaba and Matanda sites.
Victoria Oil & Gas is a domestic energy supplier in Africa through its wholly-owned subsidiary Gaz du Cameroun SA, which has operations in the industrial port city of Douala, Cameroon.
Victoria Oil & Gas said that gas production at the Logbaba project, on which it is partnered with RSM and Societe Nationale des Hydrocarbures, has continued at levels of above 5.5 million standard cubic feet per day in July and August.
The company owns 57% of the project.
Focus at the Matanda project remained on well site and access road civil works preparations, it said, as contractors wait for the rainy season to end.
Victoria Oil & Gas added that it was still seeking a partner to share the cost and risk of the commitment, and was also trying to conclude a contract on acceptable terms with the owner of the Chad-based rig.
Recent face-to-face discussions in the US with RSM have been ‘cordial and constructive’, but are yet to be finalised.
Until there is resolution with RSM, Victoria Oil & Gas is unable to raise funds via the equity market. It said that given the debt level and material uncertainty created by the ICC award against Gaz du Cameroun, it was ‘practically impossible’ to raise debt financing.
Victoria Oil & Gas is therefore wholly reliant on internally generated funds, and as a result, said its financial position was precarious.
Victoria Oil & Gas shares were last traded in London on April 1 at 3.85 pence each.
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