Victoria Oil & Gas says that, through its subsidiary Rodeo Development Limited (RDL), it has signed agreements with a private company, Cameroon Holdings Limited (CH), for the provision of drilling services, local advisory services and funding (“the Transaction”) for Logbaba.

Commenting today on the signing of the agreements, Deputy Chairman Grant Manheim said, “Satisfying the technical requirements of this extraordinary project with the resources available to us has been VOG’s priority since we acquired Logbaba in late 2008. The arrangements with CH, which we started negotiating in April, should allow us to fulfil our drilling requirement, which is a significant achievement. CH is sharing front-end geological risk in return for a production royalty.

“The arrangements with CH will provide VOG with a drilling rig, the team to operate it, at least US$4 million funding and the support and attention of an established local business. For these services, VOG pays nothing until work commences and CH’s return will not come until Logbaba commences commercial production. With CH as our partners and the rig on the water to Douala, the Project is now underway.”

Tags: Victoria Oil & Gas Plc