Victoria Oil & Gas PLC (LON:VOG) has highlighted a “solid performance” amid coronavirus (COVID-19) pandemic disruption, with revenue-generating operations ongoing in Cameroon.
In a first-quarter update, the company noted that daily average gas production was 5.1mln cubic feet per day, plus 1,656 barrels per day of condensate, which resulted in US$5.3mln of revenue for the period.
READ: VOG reveals fresh ENEO downtime dented Q4 gas sales
Additionally, the company said that grid power customer ENEO has arranged payment of four invoices - as again, the Logbaba power plant is on hiatus - for a total of US$2.9mln to be paid via promissory notes. Meanwhile, efforts continue to pursue full and regular payments from ENEO.
Amid the coronavirus pandemic, the company noted that it is complying with all instructions and guidance, and said that in Cameroon the situation is rapidly evolving – though presently it is still able to operate the wells, processing plant and pipeline without disruption.
However, it added, certain expatriate rig crew workers have left Cameroon, which has disrupted some well remediation programmes.
Meanwhile. the impact of the virus on gas sales directly is not believed to be material, though the company said it remains “vigilant”.
"Whilst this quarter saw the spread of COVID-19 and some inevitable impact on VOG, we are pleased to report a solid performance from our operating divisions, including continued revenue from the Logbaba project at previously reported levels, and ongoing cost reduction in the SGI project in Russia,” said chief executive Roy Kelly, who took up his position on March 23.
“Looking forward, we have two capital projects on the Logbaba project that will hopefully take place this year and potentially add deliverability & reserves," Kelly added.