I recall the well that requires a work over tested at 22 scuffs/day whist the higher producing hole tested at 55 scuffs, apparently neither hole has fully tested the shallower and potentially even more productive gas bearing sands.
I suspect VOG is capable of getting up to 50 scuffs/day if they optimise both holes, and things appear to be definitely changing in Gas's favour, with another contract from ENEO and CNG we will be well on our way. I believe the pipe network is estimated to be capable of supplying 45 scuffs. All is in place accept a large enough processing plant. VOG have created a market from scratch and there is no reason to believe the slow rate of acceptance so far will continue, the fear of Gas that was prevalent must now be subsiding and take up could snowball.
As verification of the potential we need look no further than near neighbour Nigeria, a major oil producer and world largest waster of gas, the article extract demonstrates the accelerating and huge take up of Gas as an energy option, attributed to a Nigeria gas Master Plan. Though Cameroon's economy is much smaller that Nigeria it doesn't have the luxury of large oil reserves so there is no reason that Gas usage could not grow in a similar manner. I believe we have every reason to be optimistic. Ghana have also signed a deal with VITOL and ENI this week to develop a supply of approaching 180 scuffs/day at a cost of $7bn, makes VOGs little niche market look like a very cheap development and money well spent.
"Nigeria’s Gas Supply Market Skyrockets
The Nigerian National Petroleum Commission in a recent report claims that Nigeria’s gas supply gas supply market has increased from 300 million cubic feet to sky rocketing 1 billion cubic feet per day.
The achievement was attributed to the successful implementation of the Nigeria gas Master Plan.
Group Director of the NNPC of gas and power, Dr David Ige said the implementation had already positioned Nigerian to be the largest producer of fertilizer on the African continent by 2018."
I have been unable to get an online price when running a dummy sell through TD Direct. Just offers to put me in the queue. Was getting the same yesterday. So either MM's aren't looking for shares or TD are playing 'silly beggars'.
Mr Keith, I know bloggers have no reason to trust each other, so past history is their best guide!! I have passed on what I heard, take it or leave it. I also said a week or two ago that the remedial work on 106 was due to start early January, I stand by that as well, but take it or leave it, makes no odds to me.
The main issue to my mind is sentiment and belief. You hold VOG so believe in the co and future (shades of belief in co. clearly in situ!). New buyers don't necessarily share your thoughts. So, what would a new investor look for - see prev post - ALL of it!
If you look at some of the E&P cos about they have been panned in their sp's. Espec. AIM.
So, think it will be a slow haul, but hopefully very profitable if VOG can set self apart from the crowd and then put some figures on the table. If they really wanted to, then get 6-12 months of 9 scuff average in and then pay a dividend - that I have no doubt would give utility credentials with a bit of added bite via drilling/WM etc and attract income investors. That said, why would VOG issue div if money need say fior CNG roll out?
Bottom line, I don't think VOG is carrying much risk to us investors ad that in AIM E&P at present is saying something
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.