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Victoria Oil & Gas profits soar as gas production climbs

Published: 07:33 26 Sep 2016 BST

picture of fuel tank meter
Production almost douibled over a year ago

Gas utility Victoria Oil & Gas plc (LON:VOG) has swung strongly into the black as production from its Logbaba field in Cameroon almost doubled.

Daily gas production rose to an average 13.1 million cubic feet (mmscf) per day in the half year to June from 6.8mmscf a year ago.

Revenues rose to US$23.6mln (US$18.9mln), while profits soared to US$3.86mln (US$215,000) helped by a sizeable fall in costs.

Victoria Oil, which supplies the Cameroon city of Douala, said the first half is normally stronger due to the timing of dry/wet seasons in the African country.

Exploratory drilling is set to start soon to boost the resource at Logbaba while expansion work on the Bonaberi pipeline is on track to connect customers that have signed up recently.

Victoria works on fixed price contracts, but said that prices had come under pressure even so due to the weak oil price reducing the cost of gas substitutes.

Kevin Foo, executive chairman, said: “Our market assessment indicates a growing demand for our gas, for both thermal and grid power markets." 

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