Victoria Oil & Gas plc (LON:VOG) told investors that its third quarter results are in-line with expectations as it gave an update ahead of the close of 2017.
The company highlighted that it has had an ‘extremely active’ few months in its Gaz Du Cameroun subsidiary.
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It has signed up five gas customers during the period; Maya & Co Oil (a palm oiil refinery), SAE (food processing), PROMETAL 3 (a smelter, new plant for existing customer), UCB (brewery, returning customer), and Laminoir (foundry, returning customer).
Additionally, it noted that ENEO, a key power customer, has continued to consume higher levels of gas at its Logbaba and Bassa power stations during the fourth quarter. New negotiations are ongoing for a longer term arrangement, meanwhile, sales are continuing on prior terms.
The positive impacts of the new sign-ups are already being seen in production statistics, with gas sales averaging 10.04mln cubic feet per day in December to date -rates peaked at 14.94mln cubic feet per day.
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"I am pleased to see the increased December gas sales levels coming through from our new thermal customers,” said Ahmet Dik, VOG chief executive.
“Supply to ENEO continues at strong levels and we shall update the market early 2018 on further gas to power supply. We shall also provide updates on the Matanda and Bomono projects."
Third quarter production figures show total net gas sales of 349mln cubic feet, which equated to 6.96mln cubic feet per day – plus a total of 2,538 barrels of condensate for the period.