Cameroon: Victoria Oil & Gas provides Cameroon operational update and details of additional listing

21 Dec 2012

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  • 11 customers taking gas from Logbaba following the commissioning of an additional five customers
  • Average daily production of 2.4million standard cubic feet per day (“mmscf/d”) with peak daily production of 3.2mmscf/d
  • Cameroon operating Company cash flow positive going forward
  • Credit Application Outcome on the Senior Secured Debt Facility expected in early January 2013

Victoria Oil and Gas, the AIM quoted oil and gas exploration and production company with assets in Cameroon and the FSU, has provided an operational update. Since the Company’s last update on 30 November, a further five customers have been commissioned and have commenced gas consumption and a further three customers are scheduled to accept gas by year end.

Of the 11 customers taking gas, the Company calculates a combined peak demand of 3.2mmscf/d and an average daily consumption of 2.4mmscf/d during a standard operating week. By this year end, the Company expects combined peak demand to be 3.6mmscf/d and average daily consumption of 2.6mmscf/d. Additionally, a large brewery with an average daily consumption of 0.4mmscf/d has committed to commence commissioning of facilities and gas consumption in January, immediately following their peak seasonal Christmas period. Besides these four customers with existing conversion projects underway, there are a further 10 contracted customers that await conversion of their facilities to take gas.

The Company is very pleased to announce that, at current consumption levels, revenue received from sales can support the operating costs going forward of Rodeo Development Limited, VOG’s operating company in Cameroon.

The financial institution that has been mandated by the Company to structure a $30 million reserve based debt financing, in relation to the monetisation of the Logbaba gas field onshore Cameroon, and where it is mandated to act as Technical Bank and Facility Agent, has recently informed the Company that the outcome of the lodged Credit Application is expected in early January 2013.

The Company has allotted 21,832,533 Ordinary Shares in lieu of a cash payment due to a major Cameroon supplier, for work completed during the year, at a price of 2.25 pence per Ordinary Share. Application has been made to the London Stock Exchange for the 21,832,533 new Ordinary Shares to be admitted to trading on AIM (‘Admission’). It is expected that Admission will become effective and that dealings will commence at 8.00 a.m. on Friday, 28 December 2012.

Following the issue of the abovementioned new Ordinary Shares, the Company’s issued share capital will consist of 2,883,223,309 Ordinary Shares with voting rights. The Company does not hold any Ordinary Shares in treasury. The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares. The aforementioned figure of 2,883,223,309 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, VOG under the Financial Services Authority’s Disclosure and Transparency Rules.

VOG Chairman Kevin Foo said, ‘Having just returned from a visit to Cameroon, I am extremely proud of what the company has achieved since we first spudded well La-105 in September 2009. Three years later, we have 11 customers accepting our gas and have visibility around a number of additional customers in the coming months. This simply would not have been achieved without the total dedication and incredibly hard work of our Cameroon Operations and Projects teams led by Jonathan Scott Barrett and Neil Kendrick. We have achieved a truly outstanding result and see 2013 as a particularly exciting year for the company.’

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Source: Victoria Oil & Gas




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