viewVictoria Oil & Gas PLC

Victoria Oil & Gas delighted with Aksa tie-up


"Signing of the term sheet with Aksa Energy is very positive"

Gas plant

Quick facts: Victoria Oil & Gas PLC

Price: 3.55 GBX

Market: AIM
Market Cap: £9.12 m


  • Gas supplier to businesses in and around Douala in Cameroon

  • Sales recovering, contract with ENEO re-negotiated

  • £13.7mln fundraise to develop fully assets at Logbaba and Matunda


What it does

Victoria Oil & Gas plc (LON:VOG) has started to grow revenues again after a hiatus with Cameroon power group ENEO ended in December.

The contract was suspended a year earlier when Victoria seemingly became collateral damage in the much larger issue of power supply in Cameroon.

Through its Gaz Du Cameroun subsidiary, Victoria was producing and supplying almost 15mmscf (million cubic feet) gross per day from the Logbaba field when the ENEO contract was at its height.

Industrial Power

To boost gas consumption, Victoria Oil is also working to install generators at the sites of industrial customers in return for a ten-year commitment with minimum agreed volumes.

Most of these power customers are already connected to GDC's gas pipeline, so adding a gas-fired generator would involve minimal downstream costs.  

GDC is working with Altaaqa and other equipment suppliers to fast track six generators for customers that want to have power online this year.

The target is to have over 18 gas to power customers online by the end of 2019, consuming over 4.5mmscf/d of gas with no seasonality, in addition to the thermal demand.

In July, VOG signed a deal with Aksa Energy to supply up to 25mln standard cubic feet a day of gas to its planned 150-megawatt power station in Bekoko, Douala.


How it's doing

Supplies to ENEO, Cameroon’s national power utility, restarted in December 2018.

In the first six months of this year, gross gas sales from the Logbaba field amounted to 1.78bn cubic feet versus 650mln in the same period of 2018.

VOG generated US$10.7mln of revenue, a rise from US$5.01mln in the comparative period of 2018.

Daily production rates improved by some 190%, to 9.9mln cubic feet per day, thanks to ENEO supply coming back online as well as the addition of new independent customers – and, during the subsequent reporting period, the company has signed a deal with Aksa Energy which sees up to 25mln cubic feet per day sent to a planned 150MW power station.

The company reported an interim UUS$7.75mln loss before tax.

Earnings (underlying EBITDA) were stated as US$3.76mln compared to just US$27,000 in the first half of 2018.

There was US$14.4mln of cash and equivalents at the end of June.


What the boss says: Roger Kennedy, executive chairman

“Signing of the term sheet with Aksa Energy is very positive and bringing that to fruition alongside additional increasing production with thermal customers will be the focus over the coming twelve months,” 





Inflexion points

  • Power deficit in Cameroon remains
  • Companies are looking to install gas supply into the grid
  • Industrial power arm continues to develop
  • The strategy was delayed for a year by the ENEO issue but evidence the strategy now is on track.

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