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STOCK MARKET WATCHLIST: Is the well running dry as energy firm seeks capital?
The rumour swirling in the City is that AIM-listed gas producer Victoria Oil & Gas is on the hunt for more funds.
The word on the street is that the company – which operates as Gaz du Cameroun in the Francophone West African state of Cameroon – has been tapping up shareholders for a new share placing to raise cash.
All of this might not come as too much of a surprise to those who monitor the company’s activities.
The firm is known to have a large following of private investors.
Victoria Oil & Gas warned at the end of September that it was keeping a close eye on cash levels, which stood at just $3.2 million (£2.4 million) at the end of June, after burning through $3.8 million in six months. It seems the well has at last run dry.
The shares have been on the slide in 2019, leaving it with a market value of just over £20 million.
Even an update on its increasing gas production levels last week failed to lift the share price.
A spokesman for the company, which is led by Kevin Foo, said it did not comment on ‘market speculation regarding capital raisings’.
Explains the weakness recently and we can move forward if it happens.
https://www.dailymail.co.uk/money/markets/article-6635895/STOCK-MARKET-WATCHLIST-running-dry-energy-firm-seeks-capital.html
Where's the link to the source you quote?
Is this another cash of a company waiting just too long to get another placing away. 3-6 months ago they could probably got a placing away at between 20p -30p then it was 15p - 20p but now they will have problems getting 10p.
Normall a company would offer 20% discount on a placing but the sp could be 10p on Monday after this news gets around, so maybe 5p - 10p with millions of shares and another consolidation. Who Knows. !!!!
Many will be selling Monday to get their best price before the sp drops a lot.
Today about vog and the wells have run dry.
It says that words going round in the city that vog is in the hunt for more funds and a new placing as the cash is/ has run dry , even after announcing increased gas sales it says they had cash of $3.2m at end of Sept but since have burned through $3.8m in 6 months.
Needless to say it says Foo said they do not comment on market speculation regarding capital raising.
Which must mean it's true and is coming down the line within a few weeks I guess.
But Hey I guess I will be called a De-ramper again.
with all respect, why would the Chinese be interested in a poxy stranded gas utility when they are gaining political capital and UN votes via the hydro projects? if anywhere else perhaps this could be the visa qualifying pet project for a child of the nouveau riche. But in civil war torn Cameroon, i think not. They even had a footie comp. pulled from them. Give the Chinese more credit.
I am not sure even the chinese would be interested in vog right now, vog have been saying for years that there are many many customers just waiting to be connected to their gas pipeline and 2-3 major power plants but in reality after about 4 years there are still only about 30 customers taking gas, and now only 1 power plant.
VOG have now ammended / abandoned their long term plans for 3 power plants and 60+ customers and are now looking for new market. All that vog have proved is that after years of trying and building a pipeline and millions of pounds spent, Cameroon has turned out to be a money pit where it looks like no one will ever get a good return on money spent .
So why would any body buy out vog.
only way we could get foo out is a take over. I'm hoping we get a chinese take over. Theres lots of money to be made from vog but it needs good management. I still stand by vog as a company but i don't stand by foo and board of directors.
Totally agree when I said FOO out I meant the whole lot his royalty his family everything...the only this moves forward is if that happens..not likely but you never know wouldn’t cost that much now...when I look back and think what we have it’s unbelievable...the infrastructure is incredible the crossing of the Wouri river? It’s all there for the right CEO
Whether he goes or stays, the royalty scheme will still be there sucking the profit out of our pockets.
At least with a new, hopefully independent, CEO this would be less of an issue.
It hasn't escaped my notice that the price of our big power gas has dropped around 40% since the first contract so Mr Foo continues to make money whilst our margins are squeezed and we are in debt to the eyeballs and possibly facing a very low price placing,
I dont think VOG could get a placing away at anywhere near 15P after the last fiasco....be surprised at 10p this is 90% FOOs doing the man is a complete liability and I've been saying the same thing for years HE HAS TO GO.....Mr Market will not price VOG fairly till he is out.....its that simple..
https://upload.wikimedia.org/wikipedia/en/0/02/Statler_and_Waldorf.jpg
Maybe the city know more than many pi's.
With the gas supply with Eneo back in play why is the SP still dropping. Am I missing anything?
Even though they have announced a new eneo contract they must still be running short of money and are looking to move their head office out of a main town to a cheaper place out of town or even Cameroon.
Just how much does it cost them to run their current head office.
sitting. duck.
there is no litigation war chest
good point . human rights action ongoing??
of all the things they DO NOT RNS, but they release this....?
It's normally the reg office where they serve any court / legal papers to when companies might want to kept separate from normal day to day business.
Stamford Street and The Strand are a world apart.
As previously suggested it looks like they are just using their solicitors as the registered office. Solicitors/accountants it's quite common.
But does this mean they are keeping the Stamford Street premises on. It's only a serviced office so they don't really need to be there and if they are serious about cutting costs, what better place to start. Would that need to be RNS'd?
And it was only a few weeks ago I suggested moving out of the Big Smoke to save money.
Goodness
They have certainly managed to dramatically downsize everybody's investment in VOG