The settlement resolves all outstanding issues relating to the reserve bonus and also ended a 1.2% royalty from a contingent payment agreement

Victoria Oil & Gas PLC (LON:VOG) has negotiated the cancellation of its reserve bonus agreement over the Logbaba gas field in Cameroon.

The settlement resolves all outstanding issues relating to the reserve bonus and also ends a 1.2% royalty from a contingent payment agreement (CPA) prior to its involvement at Logbaba.

Details of the deal are confidential but VOG said the terms were not materially different to the reserve bonus and contingency provisions.

In the 2015 accounts, the reserve bonus provision was around US$8.5mln.

Ahmet Dik, VOG’s chief executive, said he was very pleased with the agreement.

The termination of the CPA as part of the settlement was also a significant benefit to shareholders in terms of future profitability, he added.