Victoria Oil & Gas Plc, the AIM quoted oil and gas exploration and development company with assets in Cameroon and the FSU is pleased to announce that it has completed the acquisition of one third of a 6.8% royalty interest in its 95% owned Logbaba gas and condensate project in Cameroon by making a final cash payment of US$2.5 million.
The royalty interest has been acquired from PR Marriott Drilling Limited (‘PRM’), by the purchase of their one third interest in Cameroon Holdings Limited (‘CHL.’), the company entitled to the royalty.
As announced on 11 August 2011, VOG purchased 58% of PRM’s shares in CHL for a consideration of US$2.5 million in cash and drilling equipment with an estimated value of US$1 million. The Company has completed the acquisition of the remaining 42% of PRM’s interest in CHL for a cash consideration of US$2.5 million in accordance with the terms of the sale agreement.
The Company anticipates that the purchase of this one third interest in CHL will increase Logbaba project operating income by about 3%.
Kevin Foo, Chairman of VOG commented, “I am delighted that we have been able to reduce the long term cost of the royalty in this way. Independent analysts who have looked at the transaction believe it will prove to be worth several times the consideration paid.”
