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Proactiveinvestors United Kingdom Victoria Oil & Gas http://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Victoria Oil & Gas RSS feed en Thu, 24 May 2012 10:54:59 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Victoria Oil & Gas appoints Neil Kendrick as director of projects ]]> http://www.proactiveinvestors.co.uk/companies/news/42543/victoria-oil-gas-appoints-neil-kendrick-as-director-of-projects-42543.html Victoria Oil & Gas (LON:VOG) has appointed Neil Kendrick to the management as a director of projects primarily to help the company build the thermal and power business in Cameroon.

Kendrick has previously served in several senior management and executive level positions with both public and private oil and gas companies.

His most recent position was a project manager for The Expro Group where he was responsible for the on time supply, installation and commissioning of the Logbaba Plant last year.

“(Kendrick) has a proven track record of bringing projects to fruition and delivering results in demanding environments,” said chairman of Victoria Kevin Foo.

“We know Neil exceptionally well from his previous role and we are confident that his experience and leadership qualities will ensure we are successful in the implementation of our objectives.”

The appointment becomes effective on June 1 this year.

Vixtoria’s flagship asset is the Logbaba gas project in Cameroon, where it is currently working to complete a 34 kilometre pipeline to connect all industrial customers across the city of Douala after achieving first production last December with two customers connected.

Edison Investment Research said in April that shares in VOG would be due for a re-rating if the group could hit its production targets this year.

The research house noted that the installation of Victoria’s remaining distribution network on track to complete this year and it expects to hit its year end exit rate target of eight million cubic feet of gas per day (mmcfpd) from up to 20 customers.

VOG is also preparing to install a demonstration generation unit in the second half of the year to stimulate industrial customer on-site generation demand, hoping this will help it achieve rates of 20 mmcfpd next year and 40 mmcfpd in 2014.

 

]]> Wed, 09 May 2012 11:47:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/42543/victoria-oil-gas-appoints-neil-kendrick-as-director-of-projects-42543.html <![CDATA[Victoria Oil & gas set for re-rating if production targets are met, says Edison ]]> http://www.proactiveinvestors.co.uk/companies/news/41689/victoria-oil-gas-set-for-re-rating-if-production-targets-are-met-says-edison-41689.html  

Edison Investment Research reckons shares in Victoria Oil & Gas (LON:VOG) are due for a re-rating if the Cameroon operating gas group hits its production targets this year.

Vixtoria’s flagship asset is the Logbaba gas project in Cameroon, where it is currently working to complete a 34 kilometre pipeline to connect all industrial customers across the city of Douala after achieving first production last December with two customers connected.

The research house noted that the installation of Victoria’s remaining distribution network on track to complete this year and the company expects to hit its year end exit rate target of eight million cubic feet of gas per day (mmcfpd) from up to 20 customers.

VOG is also preparing to install a demonstration generation unit in the second half of the year to stimulate industrial customer on-site generation demand, hoping this will help it achieve rates of 20 mmcfpd next year and 40 mmcfpd in 2014.

“Although industrial thermal demand forms the basis for early production, medium-term growth will require these customers to also switch to on-site power generation,” said Edison analyst Ian McLelland.

“An H212 demonstration generator should help with driving up this demand, which is critical to our core NAV estimate.”

The analyst’s core net asset value (NAV) estimate of 10.2 pence per share is based on the proved and probable (2P) reserves at Logbaba, which currently stand at 212 billion cubic feet.

The current NAV is more than twice yesterday’s closing price of 4.09 pence per share.

This could increase further if prospective resources at Logbaba are also proved up and developed, giving Victoria a risked asset value estimate of 13.6 pence.

According to McLelland, the shares could re-rate within a year if target production rates are achieved.

“For now, however, we focus investors on VOG’s immediate Logbaba activities to reach its planned 2012 and 2013 production targets from industrial thermal and on-site power generation demand,” said McLelland.

 

]]> Thu, 19 Apr 2012 09:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/41689/victoria-oil-gas-set-for-re-rating-if-production-targets-are-met-says-edison-41689.html <![CDATA[Victoria Oil & Gas well on the road to cash generation ]]> http://www.proactiveinvestors.co.uk/companies/news/40172/victoria-oil-gas-well-on-the-road-to-cash-generation--40172.html This is a transformational year for Victoria Oil & Gas as it moves from explorer to cash generating gas and condensate producer in Cameroon. Chairman Kevin Foo guides us through a crucial 12 months for the company.

]]> Tue, 13 Mar 2012 12:14:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/40172/victoria-oil-gas-well-on-the-road-to-cash-generation--40172.html <![CDATA[Victoria Oil & Gas' Foo upbeat as group gets transformational year underway ]]> http://www.proactiveinvestors.co.uk/companies/news/39586/victoria-oil-gas-foo-upbeat-as-group-gets-transformational-year-underway-39586.html

Victoria Oil & Gas (LON:VOG) set the scene for what chairman Kevin Foo called a year of “major developments” by re-confirming the time-table for its roll out of Cameroon’s first commercial pipeline.

It began supplying businesses in the country’s second city, Doula, in December. The next phase of the project is underway and is due to be finished in the second quarter, with completion of the 34 kilometre network planned for third quarter.

VOG says it expects to be producing around 1 million standard cubic a day of gas from May and 8 million by the end of the year. The plan is then to ramp this up to 40 million cubic feet a day by late 2014.

All of this of course means the group is on the cusp of being cash generative. It hopes to be cashflow positive in June. It is well placed financially until then with a debt facility of US$8 million.

Chairman Foo said: “I believe that 2012 will be a year of major developments for the company as we make the transition from explorer to producer and generate positive cash flows. 

“To equip us for the future, we are strengthening our management with experienced oil and gas professionals and senior executives.

The update was provided alongside the company’s interim report covering the six months to end of November.

During the period the company increased its interest in the Logbaba gas project in Cameroon to 95 per cent, while the resource estimate fpr the West Med project in Russia increased to 1.4 barrels of oil equivalent from 300 million. VOG also completed equity placings totaling US$16.1 million (£10.1 million). 

The financials, which are largely irrelevant for a company at this stage in its development show the company posted a US$2.34 million loss, up from US$833,000 previously.


]]> Wed, 29 Feb 2012 08:07:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/39586/victoria-oil-gas-foo-upbeat-as-group-gets-transformational-year-underway-39586.html <![CDATA[Victoria Oil & Gas: Daniel Stewart eyes latent value in shares ]]> http://www.proactiveinvestors.co.uk/companies/news/39194/victoria-oil-gas-daniel-stewart-eyes-latent-value-in-shares-39194.html There is latent value in Victoria Oil & Gas’ (LON:VOG) producing assets in Cameroon, according to City broker Daniel Stewart.

In a note to clients today analyst Kate Fisher highlights the fact the VOG shares are yet to see a re-rating despite the start of commercial gas production at the Logbaba gas project last year.

This key milestone means that VOG is being transformed from an explorer to a producer, she says.

“Victoria has made the step from explorer to producer and is on the brink of the all important jump from cash burner to cash generator,” the analyst said.

Daniel Stewart has a ‘buy’ recommendation on the stock with an 8.7p price target. This punchy assessment implies the stock could rise some 130 per cent from the current price of 8.7p.

Fisher says the key drivers behind her recommendation are the favourable economics of the Logbaba gas project.

She points out that VOG has secured long term sales contracts, it has high margin production and it expects to sign-up many new sales contracts over the next two years.

“Production from Logbaba confers substantial near-term revenue,” Fisher said.

“Our cash flow projections indicate that it will achieve positive cash flows by year end 31 May 2012 and the Logbaba project will be self funding thereafter.”

The confirmation of solid cashflow figures should prove to be a catalyst for the share price, she adds.

 

]]> Mon, 20 Feb 2012 14:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/39194/victoria-oil-gas-daniel-stewart-eyes-latent-value-in-shares-39194.html <![CDATA[Victoria Oil & Gas' undervalued African and Russian assets ]]> http://www.proactiveinvestors.co.uk/companies/ceo_focus/1017/victoria-oil-gas-undervalued-african-and-russian-assets-1017.html Tue, 07 Feb 2012 15:06:00 +0000 http://www.proactiveinvestors.co.uk/companies/ceo_focus/1017/victoria-oil-gas-undervalued-african-and-russian-assets-1017.html <![CDATA[Victoria Oil & Gas passes significant milestone as it delivers its first gas in Cameroon ]]> http://www.proactiveinvestors.co.uk/companies/news/37155/Victoria-Oil-Gas-passes-significant-milestone-as-it-delivers-its-first-gas-in-Cameroon-37155.html

Victoria Oil & Gas (LON:VOG) has delivered the first commercial gas on time and on budget from its Logbaba field on the outskirts of Douala, Cameroon’s largest city.

It marks a major landmark for the group, which becomes the country’s first onshore gas condensate producer.

To make the leap from development into production the group has constructed a plant and pipeline which will take gas to the businesses of Douala.

The first stop in the network was the Magzi Industrial Estate. The second phase of the 34 kilometre pipeline is expected to be completed in the second quarter of next year.

Victoria said it expects production to grow from 8 million standard cubic feet per day in 2012 to around 44 million by the end of 2014.

Chairman Kevin Foo said: “This is a very significant milestone for the company. 

“We have now moved from an exploration and development company into a producer. 

“The development of Logbaba is also important news for the city of Douala. 

“The commissioning of two wells, production facilities and the first stage of the pipeline was successful and without incident.

“This achievement is the culmination of three years of tireless effort by the team and strong support from shareholders and the Government of the Republic of Cameroon. 

“I am very pleased that we have met our promised target of first production in fourth quarter of 2011.”

]]> Tue, 20 Dec 2011 08:09:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/37155/Victoria-Oil-Gas-passes-significant-milestone-as-it-delivers-its-first-gas-in-Cameroon-37155.html <![CDATA[Victoria Oil & Gas shares boosted by Logbaba update ]]> http://www.proactiveinvestors.co.uk/companies/news/36261/victoria-oil-gas-shares-boosted-by-logbaba-update--36261.html This morning the company told investors that it the project remains on schedule for first gas sales by year end, after it completed work on the production facilities at the site.

 

]]> Tue, 29 Nov 2011 11:50:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/36261/victoria-oil-gas-shares-boosted-by-logbaba-update--36261.html <![CDATA[Victoria Oil & Gas completes production facilities at Logbaba field ]]> http://www.proactiveinvestors.co.uk/companies/news/36246/victoria-oil-gas-completes-production-facilities-at-logbaba-field-36246.html  

Victoria Oil & Gas (LON:VOG) remains on schedule for first gas sales from the Logbaba field in Cameroon after it completed the production facilities at the site.

The production facilities will treat the gas from the wellheads and separate the condensate. 

The company confirmed that pre-commissioning of the production facilities has started and about 80 per cent of all instrumentation loops have been tested. Additionally all power circuits are in place and have been tested. 

It also revealed that the pipeline has now been installed to the first customer hub, which is located on the Magzi industrial estate. 

VOG said that the total length of the pipeline installed and backfilled to and around Magzi is 5 kilometres.

It added that specialist hydraulic and pneumatic testing equipment has been used for pipeline pre-commissioning, which includes stress testing of the entire existing network. 

It is expected that this work will be completed within the next two weeks. After that the pipeline will be purged with gas for several days as part of the network commissioning process ahead of first gas production.

Customer conversion work has commenced on a number of sites on Magzi, said VOG.

The first customers are scheduled to accept gas before the end of December and more customers will come on stream thereafter. 

VOG expects sales to build steadily to around 20 customers by the end of the first year of operations, as the entire 34 kilometre pipeline network is completed.

 

]]> Tue, 29 Nov 2011 08:12:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/36246/victoria-oil-gas-completes-production-facilities-at-logbaba-field-36246.html <![CDATA[Victoria Oil & Gas completes acquisition of royalty interest in Logbaba gas project ]]> http://www.proactiveinvestors.co.uk/companies/news/35189/victoria-oil-gas-completes-acquisition-of-royalty-interest-in-logbaba-gas-project-35189.html Victoria Oil & Gas (LON:VOG) has now completed the acquisition of one third of a 6.8 percent royalty interest in its 95 percent owned Logbaba gas and gas condensate project in Cameroon, initially announced in mid-August, by making a final cash payment of US$2.5 million.

The transaction is anticipated to increase the company’s operating income from the project by about 3 percent.

It bought the interest from PR Marriott Drilling Ltd (PRM), by the purchase of PRM's one third interest in Cameroon Holdings Limited (CHL), the company entitled to the royalty.

As announced in August, VOG purchased 58 percent of PRM's shares in CHL for US$2.5 million in cash and drilling equipment with an estimated value of US$1 million. The company has now completed the acquisition of the remaining 42 percent of PRM's interest in CHL for US$2.5 million in accordance with the terms of the sale agreement.

VOG chairman Kevin Foo said: "I am delighted that we have been able to reduce the long term cost of the royalty in this way. Independent analysts who have looked at the transaction believe it will prove to be worth several times the consideration paid."

The company received an exploitation licence for the development of the Logbaba field by presidential decree in April 2011. Logbaba is located in Douala, the economic capital of Cameroon.

Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent) and the company expects gas sales of 8 million standard cubic feet per day (mmscf/d) in the first year of operations rising to 44 mmscf/d (7,300 barrels of oil a day equivalent) by the end of 2014.

VOG is currently in the final stage of installing production facilities and a pipeline to serve industrial consumers of gas in Douala, anticipated to be complete by the end of 2011.

The current proved and probable reserves are sufficient to supply an average of 30 mmscf/d for the next 20 years. In the longer term, as further reserves may be proven, gas may be supplied to large gas fired power stations connected to the grid, with Victoria either investing in an independent power producer joint venture or selling the gas to third parties.

Condensate separated from the gas at the process plant will be stabilised and stored for export to the Sonara refinery at Limbe. Condensate production is forecast at the rate of 20 barrels per million cubic feet of gas.

VOG’s other principal asset is the West Medvezhye project in the prolific Yamal-Nenetsk hydrocarbon region in Siberia, Russia.

An independent audit carried out in 2011 estimated prospective resources for the area of over 1.4 billion barrels of oil equivalent. The company also has a discovery well, 103, with C1 and C2 reserves, independently assessed under the Russian classification convention, of 14.4 million boe.

Reprocessing of 845 kilometres of 2D seismic has recently been completed and geophysical/geological modelling is currently underway. In addition, development studies are in progress to commercialise the Well-103 discovery and prospective resources.

]]> Fri, 04 Nov 2011 07:34:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/35189/victoria-oil-gas-completes-acquisition-of-royalty-interest-in-logbaba-gas-project-35189.html <![CDATA[Victoria Oil & Gas says Logbaba will go into production on schedule later this year ]]> http://www.proactiveinvestors.co.uk/companies/news/34900/victoria-oil-gas-says-logbaba-will-go-into-production-on-schedule-later-this-year-34900.html Victoria Oil & Gas said this morning that it is on target to deliver first gas from its Logbaba condensate project in Cameroon by the end of the year.

]]> Fri, 28 Oct 2011 07:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/34900/victoria-oil-gas-says-logbaba-will-go-into-production-on-schedule-later-this-year-34900.html <![CDATA[UPDATE: Victoria Oil & Gas raises £9.5 million to complete Logbaba project in Cameroon ]]> http://www.proactiveinvestors.co.uk/companies/news/33626/update-victoria-oil-gas-raises-95-million-to-complete-logbaba-project-in-cameroon-33626.html Adds broker comments.....

Victoria Oil & Gas (LON:VOG) has raised £9.5 million through a placing to achieve first gas production from its Logbaba project in Cameroon.

This target remains on schedule for the fourth quarter of this year, said the firm.

The company said it has placed 292.3 million shares at 3.25 pence per share - a discount to the current price of 3.61 pence.

The funds will be used to complete the Logbaba gas and condensate project following the increase to its working interest to 95 percent.

The money will also fund the final payment to buy a one third interest in Cameroon Holdings Limited, which was announced in August this year, it said.

These transactions have considerably enhanced the project's economics, said Victoria, increasing net proved and probable gas reserves by around 80 billion cubic feet and the post tax NPV by $270 million to $676 million.

"This placing demonstrates continued investor confidence in VOG in very challenging markets," said Kevin Foo, chairman of the firm.

Victoria also revealed that it had issued a further 28.4 million shares to key suppliers and advisors at a price of 3.25 pence per share in settlement of outstanding costs and fees -  an additional vote of confidence in the company.

Analyst Shahin Amini, at broker FoxDavies, which retains its 'buy' rating on the stock said the firm's shares were trading at a "substantial discount" to the broker's new core NAV (net asset value) of 8.7 pence.

"With the funding issue out of the way, investors can now look forward to the completion of Logbaba gas project and subsequent sale revenues towards the end of this year," said the analyst.

FoxDavies targets a price of 13 pence for the shares.

Meanwhile, broker Westhouse said the fundraising meant the firm was "further de-risked".

"We maintain that VOG represents excellent value at current levels, and reiterate our 'buy' recommendation and target price of 10.8p," it said.

Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent) and the company expects gas sales of 8 million standard cubic feet per day (mmscf/d) in the first year of operations rising to 44 mmscf/d (7,300 barrels of oil a day equivalent) by the end of 2014.

The pipeline has a capacity of 60 mmscf/d, which is anticipated to be of sufficient size for the Douala (the largest city in Cameroon) industrial market over the medium term.

The company's current proved and probable reserves are sufficient to supply an average of 30 mmscf/d for the next 20 years. In the longer term, as further reserves may be proven, gas may be supplied to large gas fired power stations connected to the grid, with Victoria either investing in an independent power producer joint venture or selling the gas to third parties.

]]> Tue, 27 Sep 2011 14:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/33626/update-victoria-oil-gas-raises-95-million-to-complete-logbaba-project-in-cameroon-33626.html <![CDATA[Victoria Oil & Gas raises £9.5 million to complete Logbaba project in Cameroon ]]> http://www.proactiveinvestors.co.uk/companies/news/33597/victoria-oil-gas-raises-95-million-to-complete-logbaba-project-in-cameroon-33597.html Victoria Oil & Gas (LON:VOG) has raised £9.5 million through a placing to achieve first gas production from its Logbaba project in Cameroon.

This target remains on schedule for the fourth quarter of this year, said the firm.

The company said it has placed 292.3 million shares at 3.25 pence per share - a discount to the current price of 3.61 pence.

The funds will be used to complete the Logbaba gas and condensate project following the increase to its working interest to 95 percent.

The money will also fund the final payment to buy a one third interest in Cameroon Holdings Limited, which was announced in August this year, it said.

These transactions have considerably enhanced the project's economics, said Victoria, increasing net proved and probable gas reserves by around 80 billion cubic feet and the post tax NPV by $270 million to $676 million.

"This placing demonstrates continued investor confidence in VOG in very challenging markets," said Kevin Foo, chairman of the firm.

Victoria also revealed that it had issued a further 28.4 million shares to key suppliers and advisors at a price of 3.25 pence per share in settlement of outstanding costs and fees -  an additional vote of confidence in the company.

Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent) and the company expects gas sales of 8 million standard cubic feet per day (mmscf/d) in the first year of operations rising to 44 mmscf/d (7,300 barrels of oil a day equivalent) by the end of 2014.

The pipeline has a capacity of 60 mmscf/d, which is anticipated to be of sufficient size for the Douala (the largest city in Cameroon) industrial market over the medium term.

The company's current proved and probable reserves are sufficient to supply an average of 30 mmscf/d for the next 20 years. In the longer term, as further reserves may be proven, gas may be supplied to large gas fired power stations connected to the grid, with Victoria either investing in an independent power producer joint venture or selling the gas to third parties.

]]> Tue, 27 Sep 2011 07:32:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/33597/victoria-oil-gas-raises-95-million-to-complete-logbaba-project-in-cameroon-33597.html <![CDATA[UPDATE: Victoria Oil & Gas shares lifted by good news from Cameroon and Russia ]]> http://www.proactiveinvestors.co.uk/companies/news/32926/update-victoria-oil-gas-shares-lifted-by-good-news-from-cameroon-and-russia-32926.html UPDATE: Adds comments from broker Westhouse Securities

Victoria Oil & Gas PLC’s (LON:VOG) announced that its flagship gas project in Cameroon is on track and that the prospective resources for the West Medvezhye oil project have received a substantial boost.

The news lifted the stock, rising 7.5 percent to 4.06 pence in early trade.

In a letter to shareholders published today, the group said the Logbaba gas and gas condensate project in Cameroon is making good progress and remains on schedule for delivery of first gas to customers in the fourth quarter of 2011.

Further, an independent re-assessment of the prospective resources of the West Medvezhy field on the Yamal Peninsula peninsula in Siberia has increased the previous estimate by 300 million barrels of oil equivalent to 1.4 billion boe. The company has also started work on a study to examine the feasibility of a production start in 2015.

At Logbaba, Victoria received an exploitation licence for the development of the field by presidential decree in April 2011.

Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent) and the company expects gas sales of 8 million standard cubic feet per day (mmscf/d) in the first year of operations rising to 44 mmscf/d (7,300 barrels of oil a day equivalent) by the end of 2014. The pipeline has a capacity of 60 mmscf/d, which is anticipated to be of sufficient size for the industrial market of the city of Douala in the coast over the medium term.

Production trees assembly for the wells is now complete.  Substantial progress has been achieved on the gas pipeline network, the area the most at risk from the weather.

Out of a total pipeline distance of 4.5 kilometres to the first customers in central Douala, 1.2 kilometres of pipeline has been installed, backfilled and successfully pneumatically tested, with a further 0.3 kilometres of pipeline jointed and awaiting installation.

The company anticipates that the entire section of pipeline to first customers on the Magzi Industrial Estate will be installed within approximately one month.  It will be able to supply gas to Magzi customers while the rest of the pipeline is under construction.

At the site itself, drilling of all 36 of the piles is complete to a depth of 10 metres and concrete has been poured. Gas plant contractor Expro is testing process plant vessels, flow lines and equipment at their base in Douala.

Specifications for Pressure Reduction and Metering Stations (PRMSs) have been prepared for more than 20 of Victoria’ customers and the first nine units have been ordered.

“In summary, despite the difficulties associated with construction operations during the Wet Season, we have made excellent progress on all fronts and we remain confident of delivering first gas sales on schedule,” Victoria said.

The company currently has 12 signed and executed gas sales agreements (GSAs) and a further 10 GSAs which have been commercially agreed. All contracts will be signed at a price of US$16 per million British Thermal Units (mmbtu), fixed for 5 years from the date of first gas delivery.

The existing proved and probable reserves are sufficient to satisfy an average production of 30 mmscf/d for the next 20 years and are supported by the local supply contracts.

At West Medvezhye, the Russian geoscience consulting institute Mineral LLC undertook a seismic reprocessing and geological modelling study, building on the work done by DeGolyer and MacNaughton (D&M). Mineral’s work incorporated the passive seismic survey results, gas tomography and conventional 2D seismic.

The institute concluded West Meds prospective resources are now in excess of 1.4 billion boe, including increased oil prospectivity of approximately 670 million barrels of oil in the Lower Cretaceous Neocomian-Achimov and Jurassic formations.

Victoria said it will submit an application later this month to the Russian authorities requesting approval of its proposed drilling location.

In the meantime, technical consultant Blackwatch has been carrying out appraisal and development studies.

“Preliminary development assessment work on the Well 103 discovery at West Med indicates that we will plan for first oil sales in 2015 subject to further refinement and screening.”

Discovery well 103 has Russian-classification C1 and C2 reserves of 14.4 million boe and 170 mmboe recoverable resources approved by the Russian Ministry of Natural Resources. Currently, appraisal and development studies are in progress to commercialise the Well-103 discovery and prospective resources.

Westhouse Securities analyst Andrew Matharu repeated a buy recommendation, and a 10.1p price target, following today’s update.

“This is a reassuring update from VOG, in which it confirms that the Logbaba project remains on schedule for first gas sales this year, despite the operational challenges the group has faced while working during the rainy season,” the Westhouse analyst said in a note to clients.

“The resource update for West Medvezhye is also positive, due to both the increase in the overall resource estimate and also because of the heavier weighting of oil within the estimated 1.4 billion barrel oil equivalent. 

“We maintain our view that VOG is significantly undervalued at current levels.”

]]> Fri, 09 Sep 2011 15:01:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/32926/update-victoria-oil-gas-shares-lifted-by-good-news-from-cameroon-and-russia-32926.html <![CDATA[Kevin Foo from Victoria Oil & Gas says the share price is far short of true value ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/847/kevin-foo-from-victoria-oil-gas-says-the-share-price-is-far-short-of-true-value-.html LON:VOG), tells Proactive Investors that the share price in no way represents the assets in Cameroon, which are coming on stream in Q4 this year, let alone the prospects that VOG ]]> Fri, 26 Aug 2011 10:56:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/847/kevin-foo-from-victoria-oil-gas-says-the-share-price-is-far-short-of-true-value-.html <![CDATA[Victoria Oil & Gas sets seal on Logbaba gas field deal ]]> http://www.proactiveinvestors.co.uk/companies/news/31994/victoria-oil-gas-sets-seal-on-logbaba-gas-field-deal-31994.html Victoria Oil & Gas (LON:VOG) set the seal on its development of the Logbaba gas field today as it announced a final payment for the project.

The company said around 29 million shares had been allotted to settle deferred payments relating to its 2008 acquisition of Bramlin Limited.

Bramlin is the owner of the Logbaba gas and condensate project, and it has been wholly-owned subsidiary of Victoria since the transaction in November 2008.

In April this year, Victoria was awarded an exploitation licence, meaning the field could be commercialised, said it was on track to deliver first gas to customers in the nearby city of Douala in the fourth quarter of this year.

In a statement today, Victoria said that following the granting of the exploitation licence for Logbaba, 29,354,285 shares had been allotted in settlement of deferred consideration and deferred bonus obligations.

The firm added that 1,384,080 shares had been allotted to directors and employees in lieu of a cash salary for the six months to July 31 this year at a weighted average month-end market price of 4.8 pence per share - representing a total cost of £66,435,84.

Following the allotments, chairman Kevin Foo will hold 52.6 million shares or 2.41 per cent of Victoria, held through H J Resources Limited on behalf of a discretionary trust, of which he and his wife are potential beneficiaries.

Finance director Robert Palmer will hold 1.13 million shares - or 0.05 percent of the firm.

Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent) and the company expects gas sales of 8 million standard cubic feet per day (mmscf/d) in the first year of operations rising to 44 mmscf/d (7,300 barrels of oil a day equivalent) by the end of 2014.

The pipeline has a capacity of 60 mmscf/d, which is anticipated to be of sufficient size for the Douala (the largest city in Cameroon) industrial market over the medium term.

The company's current proved and probable reserves are sufficient to supply an average of 30 mmscf/d for the next 20 years. In the longer term, as further reserves may be proven, gas may be supplied to large gas fired power stations connected to the grid, with Victoria either investing in an independent power producer joint venture or selling the gas to third parties.

]]> Tue, 16 Aug 2011 10:32:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/31994/victoria-oil-gas-sets-seal-on-logbaba-gas-field-deal-31994.html <![CDATA[Victoria Oil & Gas acquires small royalty interest in Logbaba gas project ]]> http://www.proactiveinvestors.co.uk/companies/news/31807/victoria-oil-gas-acquires-small-royalty-interest-in-logbaba-gas-project-31807.html Victoria Oil & Gas (LON:VOG) said it has acquired one third of a 6.8 percent royalty interest in its 95 percent owned Logbaba gas and gas condensate project in Cameroon, which is anticipated to increase the company’s operating income from the project by 2.9 percent.

It bought the interest from PR Marriott Drilling Ltd (PRM), by the purchase of its (PR Marriott's) one third interest in Cameroon Holdings Limited (CHL).

As disclosed in July 2009, Victoria subsidiary Rodeo Development Ltd entered into an agreement with CHL, part of which provided for a royalty payment on production from Logbaba. The royalty is calculated on a sliding scale averaging 6.8 percent of project revenues over a 20 year anticipated project life.

Under the terms of the deal announced today, Victoria has bought 58 percent of PRM's shares in CHL for US$2.5 million in cash and drilling equipment to the value of US$1 million. It has also agreed to purchase the remaining 42 percent of PRM's interest in CHL in 90 days for a further US$2.5 million in cash. 

Victoria received an exploitation licence for the development of Logbaba field by presidential decree on April 29 2011.

Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent) and the company expects gas sales of 8 million standard cubic feet per day (mmscf/d) in the first year of operations rising to 44 mmscf/d (7,300 barrels of oil a day equivalent) by the end of 2014. The pipeline has a capacity of 60 mmscf/d, which is anticipated to be of sufficient size for the Douala industrial market over the medium term.

The company's current proved and probable reserves are sufficient to supply an average of 30 mmscf/d for the next 20 years. In the longer term, as further reserves may be proven, gas may be supplied to large gas fired power stations connected to the grid, with Victoria either investing in an independent power producer joint venture or selling the gas to third parties.

Condensate separated from the gas at the process plant will be stabilised and stored for export to the Sonara refinery at Limbe. Condensate production is forecast at the rate of 20 barrels per million cubic feet of gas.

The project is on schedule for delivery of first gas to customers in Q4 2011 and site preparation for the gas plant has begun and pipe laying to customers is also well underway.

Chairman Kevin Foo said: "This acquisition is a value creative long term investment by the company that should return multiples of the US$6 million consideration over the project life and add considerably to project returns to shareholders."

Victoria Oil & Gas is an independent oil and gas exploration and production company with projects in Africa and the former Soviet Union. The company's principal assets are the 95 percent owned Logbaba project and the 100 percent owned West Medvezhye project in Siberia, Russia.

]]> Thu, 11 Aug 2011 07:36:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/31807/victoria-oil-gas-acquires-small-royalty-interest-in-logbaba-gas-project-31807.html <![CDATA[Victoria Oil & Gas in £600,000 SEDA draw down ]]> http://www.proactiveinvestors.co.uk/companies/news/31287/victoria-oil-gas-in-600000-seda-draw-down--31287.html Victoria Oil & Gas (LON:VOG) announced it has drawn down a further £600,000 from its £10 million standby equity distribution agreement (SEDA) with YA Global Master SPV Ltd, the US-based investment fund.

Under the draw down the company has allotted, conditional on admission, 14,690,827 ordinary shares of 0.5 pence each in Victoria Oil & Gas YA Global at a price of 4.08 pence per share.

The price is calculated by a formula under the terms of the SEDA based on the prevailing market price.

Admission for trading of the allotted shares is expected to occur at 8am on 1 August 2011. Following admission, the Victoria Oil & Gas will have 2,153,531,098 ordinary shares in issue.

The company struck the SEDA agreement with YA Global in June 2009. Benefits of using SEDA to raise capital include low cost, flexibility and speed.

Victoria Oil & Gas has projects in Africa and the Former Soviet Union. Its principal assets are the Logbaba gas and condensate project in Cameroon and the West Medvezhye field in Siberia, Russia.

Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s and all four exploration wells encountered gas. The company drilled two successful development wells in 2009/10.

West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent reserve audit estimated prospective resources for the field of over 1.1 billion barrels of oil equivalent.

]]> Fri, 29 Jul 2011 08:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/31287/victoria-oil-gas-in-600000-seda-draw-down--31287.html <![CDATA[Victoria Oil & Gas update on Siberian exploration cheers analysts ]]> http://www.proactiveinvestors.co.uk/companies/news/30372/victoria-oil-gas-update-on-siberian-exploration-cheers-analysts-30372.html Analysts cheered an encouraging update from Victoria Oil & Gas today, with the group revealing that it is continuing to make solid progress with exploration and development across its West Medvezhye block in Siberia. Indeed, some analysts believe the stock is undervalued and that it is only a matter of time before the market corrects the anomaly.

]]> Thu, 07 Jul 2011 12:33:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/30372/victoria-oil-gas-update-on-siberian-exploration-cheers-analysts-30372.html <![CDATA[UPDATE: Victoria Oil & Gas continues to make progress with Siberian exploration ]]> http://www.proactiveinvestors.co.uk/companies/news/30356/update-victoria-oil-gas-continues-to-make-progress-with-siberian-exploration-30356.html UPDATE...with broker comment

Victoria Oil & Gas (LON:VOG) put out an encouraging update on its exploration work across its West Medvezhye block in Siberia. It is also making progress with taking its first discovery there, Well-103, to full commercialisation.

Victoria, through its wholly owned subsidiary ZAO SeverGas-Invest (SGI), holds a 20-year exploitation licence for West Medvezhye (West Med) covering 1,224 km2.

Located in Nenets region of Siberia, West Med is located in one of the most prolific oil and gas producing areas of the world and is adjacent to Gazprom's giant Medvezhye field that has already produced over 70 trillion cubic feet of gas.

Independent assessment in 2006 indicated West Med held total prospective resources of approximately 1.1 billion barrels of oil equivalent.

The latest phase of exploration work on West Med has involved integration of new data with previous seismic and well data to firm up prospects and leads that have already been identified.

Key initial findings include an estimated 400 million barrels of oil equivalent in-place in six features mapped by passive seismic and gas tomography surveys.

The continuing encouraging findings have led to the company commissioning a seismic reprocessing and geological modelling study for the prospect. The first phase of this technical work, which included reprocessing of 845 km of 2D seismic, was completed in June 2011.

Analysis of the reprocessed seismic data has begun and will incorporate the passive seismic and gas tomography results.

The results of the analysis are scheduled to be considered in a workshop in Tyumen, Russia in July 2011, said the company.  

In addition to the subsurface technical studies, Victoria Oil & Gas has also started development studies to support commercialisation of prospective resources and exploitation of its first discovery in the West Med, Well-103.

These studies cover areas such as drilling and well engineering, as well as design work to establish costs and schedules for oil, gas and condensate production facilities and supporting infrastructure.

The company has also been looking into downstream and export issues with regards to future production from West Med.

Several routes to market for commercialisation are available, it says, including the Chircha railroad station, located within the southwest boundary of the licence, and the river port and loading terminal of Old Nadym are located 22 km away.

In addition, one of Gazprom's principal gas transmission pipeline's in the area runs along the eastern border of the licence and the nearest Central Gas Processing Unit is located 18.5 km from West Med.

Initial studies suggest an early production scheme for the Well 103 discovery could involve the sale of small volumes of crude into the local market with prices of US$60 per barrel achievable. This would be followed by full scale oil and gas development for export as the oil and gas export market is well established in this part of Siberia.

The results of Victoria’s preliminary development assessment work on the Well 103 discovery indicate first oil sales in 2015, subject to further refinement and screening.

While the West Med is looking promising for the company, Victoria’s principal focus has been the development of and commencement of gas and condensate production at Logbaba in Cameroon, scheduled for the fourth quarter of 2011.

Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s and all four exploration wells have encountered gas.

Broker Northlands welcomed the update saying that at its current valuation for the company it considers West Med as a ‘in for free upside’ for the shares.

It added: “Whilst detailed economics and a recoverable reserve figure may take a while, the honing in on the ‘in place’ estimate is encouraging whilst potential first oil sales in 2015 puts a timescale on monetisation.”

Westhouse also gave the update the thumbs up, saying given the resource potential, West Med “clearly holds great upside” for Victoria Oil & Gas.

“However, the work there still remains at a relatively early stage. The focus therefore remains on the group’s progress at Logbaba, in Cameroon, where we still expect first gas sales before the end of 2011,” it adds.

Westhouse reiterated ‘buy’ on the stock, with an unchanged target price of 7.4p.

]]> Thu, 07 Jul 2011 07:55:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/30356/update-victoria-oil-gas-continues-to-make-progress-with-siberian-exploration-30356.html