Victoria Oil & Gas plc (VOG)’s wholly owned subsidiary, onshore gas producer and distributor Gaz du Cameroun SA (GDC) in Cameroon, has settled gas invoices and agreed a loan note.
INVOICES
The agreement relates to take-or-pay invoices with Eneo Cameroon S.A. of 2.74 billion CFA franc ($5m/£3.58m) to GDC.
The settlement signed on 16 April relates to the take-or-pay invoices for October, November and December 2019 when gas was not supplied to Eneo because of no demand.
At the time of the termination of the contract with Eneo in July 2020, VOG had ten take-or-pay invoices outstanding.
The company has now recovered four out of ten of the outstanding invoices plus interest to February 2021.
LOAN NOTE
The news follows VOG’s definitive agreement on 8 April with shareholder Hadron Master Fund to raise £1.25m through an unsecured loan note.
The proceeds will be used for general working capital purposes.
TERMS
VOG must repay the loan on 5 April 2022 and repay 110% of the aggregate loan note principal amount without further interest.
Additionally, VOG has granted Hadron warrants over an aggregate of 10,416,667 ordinary shares of £0.005 in the company.
The warrants can be subscribed for at any time prior to the third anniversary of the loan note.
The subscription price of each warrant is 6.0 pence per ordinary share, representing a premium of 20% to the closing mid-market price of 5.0 pence per share on 7 April 2021.