RSM Settlement Update
The Company today announces that Akintola Williams Deloitte, Nigeria (“Deloitte”), a member firm of Deloitte Touche Tohmatsu Limited, has finished its fieldwork and issued a draft report relating to development cost contributions by both parties towards the Logbaba gas project.
As announced on 24 January 2014, VOG and RSM Production Corporation (“RSM”) entered into an agreement to appoint an independent firm to review the cash calls issued to RSM for:
- RSM’s participating interest share of incurred expenses from inception of the Logbaba gas project to 31 December 2013; and
- An advance for RSM’s participating interest share of anticipated expenses for January 2014.
Deloitte were appointed by RSM and VOG jointly under the agreement and completed their field work covering the agreed-upon procedures in September 2014.
A process of review is now underway where the parties can submit comments on the report to Deloitte. Following the review period, a final document will be issued by Deloitte to the parties. Under the terms of the Settlement Agreement Deloitte’s decision is final.
VOG will update the market following receipt of the final Deloitte report.