www.victoriaoilandgas.com
Victoria is an independent oil and gas exploration and production company with projects in Africa and the FSU. The Company’s principal assets are 95% of the Logbaba gas and condensate project in Cameroon and 100% of the West Medvezhye gas field in Siberia, Russia. Logbaba is located in Douala, the economic capital of Cameroon. West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia.
Victoria Oil & Gas says Logbaba will go into production on schedule later this year
Victoria Oil & Gas (LON:VOG) 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.
The update was provided in the company’s annual results statement, which revealed VOG posted a pre-tax loss of US$4.6 million, down from US$6.1 million this time last year. The company is well funded with cash and equivalents of US$8.4 million.
For long-term followers of the company the Logbaba gas project is key, and investors will be pleased there have been no hitches bringing it into production - even though the rainy season has been “particularly wet”.
The group is building a gas pipeline that will eventually circle the city of Doula, Cameroon’s industrial hub.
Initially already has 13 customers signed up, and the hope is in the coming “couple of years” it could have up to 40 businesses substituting expensive heavy fuels for cheaper gas.
“Industry in Douala is severely constrained by high energy costs and unreliable delivery,” chairman Kevin Foo in a statement today.
“Victoria has a captive market that is eager to take Logbaba gas because it provides direct savings on energy costs, cleaner, more reliable energy and fixed prices for five years.
“Logbaba gas is expected to attract new industrial entrants to the region and encourage capital expansion from existing customers with certainty of supply at a lower cost base.
“Importantly for Victoria, the terms of our gas sales agreements also mean we are not exposed to gas price fluctuations.”
The company’s other project is West Medvezhye in Russia. Here the VOG’s technical team has begun conceptual screening and appraisal studies to optimise development of its prospective resource base and develop the discovery well 103.
“This work is ongoing and I am encouraged that preliminary assessment work on the Well 103 discovery indicates that we can plan for first oil sales in 2015,” Foo added.
Separately, VOG announced it has appointed Macquarie Capital as joint broker to the company.
