LONDON, February 27, 2013 /PRNewswire/ --
Mr Jack J. Grynberg, President and CEO of RSM Production Corporation (RSM), rejects the statement issued yesterday by Victoria Oil & Gas plc (VOG) regarding the ownership of rights in the Logbaba Concession.
He said today:
"I note the statement issued by VOG yesterday. It is disappointing that it has necessitated a statement from RSM to force VOG to disclose important information about the contested ownership of its principal asset to its existing and new investors.
"I reject VOGs characterisation of the Cameroon Presidential decree, which is public information and clearly states that RSM has a 38 per cent interest in the Concession. I fully expect the arbitration in June to rule in RSM's favour confirming at least a 38 per cent interest (and possibly a 47.5% interest) in the Concession. Following an award in RSM's favour, I personally intend to review all strategic decisions that have been made unilaterally by VOG without regard to RSM's rights in the project, and without any technical and economic basis by an incompetent management, RSM will be actively involved in the management and operation of all commercial projects in respect of the Concession.
"As President and Chief Executive of RSM I have been involved in the Logbaba Concession since it was initially granted to RSM in May 2001 and intend to remain actively involved in the future. I have had to resort to protracted arbitration in order to assert RSM's rights in the Concession and will continue to take such steps as are necessary to protect its interests, through to the conclusion of the arbitration and beyond."
Notes to Editors:
- Jack J. Grynberg is the President and CEO of RSM Production Corporation. He is an eminent and highly experienced expert in the fields of hydrocarbon research, exploration, development and production. He has been resolute and highly successful in defending his and his family's companies' interests through litigation. He has previously been involved in litigation against a number of companies and representatives in the oil and gas industry. In 2008 he named BP and its former chief executive Lord Browne of Madingley in a lawsuit alleging bribery of government officials in Grenada. Concurrently, he also sued BP and its - at the time - current and former chief executives Tony Hayward and Lord Browne over allegations of bribery of government officials and racketeering in Kazakhstan, as well as Norway's Statoil and its chief executive, Helge Lund.
- RSM Production Corporation (RSM) operates as an oil and gas exploration and production company. The company was incorporated in 1996 and is based in Denver, Colorado. RSM owns at least a 38% (and possibly a 47.5 per cent) interest in the Logbaba Concession.
- Victoria Oil and Gas plc (VOG) is an AIM listed oil and gas exploration and production company with assets in Africa and the FSU. The company's principal assets are the Logbaba gas and condensate project in Cameroon and the West Medvezhye project in Siberia, Russia. VOG Chairman is Kevin Foo.
- The Logbaba Concession was granted to RSM by the Republic of Cameroon on 31 May 2001. On 9 August 2006 RSM assigned an interest to a VOG subsidiary, which was approved by Cameroonian Presidential Decree on 29 November 2006. It is a matter of contention as to whether the assignment was of a 50 per cent interest or a 60 per cent interest in the Concession. In 18 July 2011, VOG asserted that pursuant to the provisions of an operating agreement between the parties, RSM had forfeited to VOG its remaining interest. This assertion is disputed and is subject of ongoing and protracted Arbitration between the parties.
- RSM rejects VOG's claims that RSM has forfeited its interest in the Logbaba Development and the Government of Cameroon has not approved the transfer of RSM's remaining interest in the Logbaba Development to VOG. A Republic of Cameroon Presidential Decree executed on 3 December 2012 states that RSM owns a 38% interest in the Logbaba Concession.
The Presidential Decree executed on 3 December 2012, amended the 29 November 2006 decree which erroneously stated that VOG - and not its 100% subsidiary Rodeo Development Limited (RDL) - held a direct 57% interest. The decree provides as follows:
'A valuable Gas Concession called 'Logbaba' has been given to an association of these companies: NATIONAL PETROLEUM COMPANY (SNH) (PO Box 955 Yaounde), RODEO DEVELOPMENT LIMITED (PO Box 128 Douala), and RSM Production Corporation (5000 South Quebec Street, Suite 500, Denver, Colorado 80237-270 USA), each company having an undivided interest as follows:
- Rodeo Development Limited .............................57%
- RSM Production Corporation .............................38%
- Societe Nationale des Hydrocarbures (SNH).......5%
SOURCE RSM Production Corporation