Victoria Oil & Gas PLC (AIM:VOG) shares have been suspended after an Arbitral Tribunal of the International Chamber of Commerce (ICC) ruled against the company’s subsidiary Gaz du Cameroun, making an award totalling US$12.1mln.
The company, in a stock market statement, noted that under the arbitration’s rules there can be no appeals and awards are to be paid without delay – however, the company said that neither GDC or Victoria Oil & Gas has the ability to pay the award without some delay.
As a result, the shares have been suspended pending a resolution to what the company described as a “fundamental uncertainty to continue as a going concern”.
“The tribunal's findings are of course disappointing, to say the least, but they cannot be appealed and we must deal with the consequences and move forward,” said Roger Kennedy, VOG chairman.
Kennedy said he has confidence that VOG can “navigate through this legacy issue” and return to a healthier footing.
The dispute was with contractor RSM Production Corporation and claims related to drilling costs in previous work programmes in Cameroon.