The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
How long can you keep suspend?
Thanks Potty - PE of 45x looks a tad dear! That said, VOG may soon have none plus a profit would help.! GL
I toast you from the taproom of the Nearly There Arms. Come across to HBR for ten years instead and make some real money.
maisydaisy- you are a whizz with the numbers and have been for many years here. HBR is on the up. Not Long Now.
Doula is about 1000 km from lagos. Matanda near to logbaba, processing plant and then the port. Assume could be liquidised and shipped off. All pie in the sky until RoyK gives some morsel if information. No gas or route out of cam is not a good outcome. Gas and international product could see exponential sp rerate. So we have to just wait...not that the share can be traded anyway! I also ponder why capital was raised by investors taking options as we're recent director bonuses. Share valued not cash. Hope they know something we don't.
Maybe the could tap into the wagp . Europe needs it .
The suspension was effected due to concerns over VOG meeting the RSM liability. Only way out imho is proving gas etc in Matanda which in itself will not provide any cash meet the liability. So if we assume gas etc at commercial volume has been found with the intended low depth drills, then up to VOG and Mr Kelly to then seek funding via JV/borrowing/giving RSM a chunk or more share of Logbaba and nothing of Matanda etc. So some lengthy dialogues needed just at a funding level. Then chuck in Cam Govs approval...so some likely significant time lags depending on which option works/is viable.imho the lack of energy sales in cam is down to cash to proceed with the posts below - Limbe/bekoko etc and if VOG could start say producing LNG for sale abroad then a lot of cash would go the way of the Cam gov. Selling to local market via ENEO and these 'shelved' energy projects has proved untenable due to ENEO default and no private cash. Dry season is approaching too. A tangled web - s or bust!
I thought the suspension was temporary. How long is temporary?
I think I'll ask Foo. He probably say it imminent.
And Limbe - 2 years AGO!
The Limbé gas thermal power project comprises of:
Component 1: 350MW gas power plant;
Component 2: Transmission line to evacuate electricity on the Bekoko 225/90kV transformer substation;
Component 3: Construction of an access road to the site;
Component 4: Local subcontracting;
Component 5: Environmental and social management;
Component 6: Capacity building and skills transfer.
With a production capacity of 350MW, the Limbe gas-fired power station is expected to improve the supply of electricity in the Littoral, West, and South-West regions, a statement by the Ministry of Energy noted.
Gaz du Cameroun (GDC), a wholly-owned subsidiary of Victoria Oil & Gas (VOG), has signed a non-binding term sheet with Aksa Enerji Uretim (Aksa Energy) to supply up to 25 million standard cubic feet per day of gas for the latter’s proposed power station.
The 150MW power station will be built in Douala, Cameroon near the Bekoko substation, which is close to GDC’s existing gas pipeline network.
Earlier this month, Cameroon Minister of Water Resources and Energy, on behalf of the Government of the Republic of Cameroon signed a memorandum of understanding (MoU) with Aksa Energy to develop the power plant project.
Victoria Oil & Gas CEO Ahmet Dik said: “Considerable progress has been made in our Gas-to-Power strategy, as evidenced by the term sheet signed with Aksa Energy, one of the largest global independent power producers.
“Upon commencement, which is planned for late 2020, production levels would dwarf the current level of gas sales and propel VOG into a profitable trajectory of growth which has always been our aim.
All good stuff...but what about the bekoko powers station. Smacks of energy projects funded by grants etc and never come to fruition. Some time ago was looking at solar...blah blah blah. Hope vog can hit gas and sell to the wider global market. Thus getting out of current hole!
While the long wait goes on for news
Port of Kribi: five companies in the running to build a gas-fired power plant
(Business in Cameroon) - Five companies have been prequalified for the installation of a gas-fired thermal power plant in the port enclosure, we learn from a press release signed by Patrice Melom, the managing director of the Autonomous Port of Kribi ( PAK), located in southern Cameroon. They are, in order of merit, the Tecmon/Telemenia consortium; from Britain's Aggreko; the Wartsila/Africa Finance Corporation consortium; British Globeleq and Ghanaian BXC Company.
On observation, most of these candidates are already operating on certain energy projects in Cameroon and in particular in Kribi. "? The managers of the said companies will be contacted in due course for the rest of the procedure ?", writes the DG of the Port of Kribi.
Currently, the Port of Kribi is served by a 30 Kv line connecting it to the Southern Interconnected Network. The supply of electricity through this means covers the needs generated mainly by the first port and logistics activities which have developed since the official commercial opening of the said port in March 2018.
However, indicates the PAK, by 2024, this available power will prove to be very insufficient with regard to the projected needs considering the installation of the industrial projects announced in the industrial-port zone. Consequently, the PAK considers that it is essential, in the short term, to acquire a reliable and autonomous power supply solution capable of meeting the needs of its current and future lessees.
To do this, the PAK plans to set up a natural gas thermal power station in the port for which it is responsible, with an initial capacity of between 50 MW and 80 MW, which can be extended. Which will be financed, built and operated by a partner with the required expertise and technical and financial capacities. The PAK undertakes to acquire a certain quantity of energy, at an agreed price, before distributing it to the occupants of the industrial-port zone. The power plant will be supplied with natural gas by the National Hydrocarbons Company (SNH).
https://www.investiraucameroun.com/economie/2408-18329-port-de-kribi-cinq-entreprises-en-lice-pour-construire-une-centrale-thermique-a-gaz
SNCH did extend the explo terms for VOG, so hope no deals enter the mix, assuming they get that far!
Big maybes! Have faith in Roy and moreover the matanda surveys done. If a decent reserve can be easily accessed, in theory VOG should be able to either capital raise to pay RSM either directly or via a JV . My main concern is the Cam administration. Remember Aksa, bekoko, solar energy plants etc. Hoping if possible that either cleaned or otherwise gas can be put straight onto a karpowership type boat and liquidised there before being shipped off to Germany!!
Agree maisy. Maybe just maybe Matanda could be the saviour of VOG. Potentially there's enough gas for both VOG and RSM to profit handsomely. Let's hope the drilling campaign goes ahead,we get a deal with RSM and the suspension is lifted. As a bonus a SP of 6p to begin with once trading resumes. Am I delusional? We'll know soon.
Not yet! Convinced that VOG will only survive if the 'now' drilling (is rig even on site? ) gives results. The potential is huge (like the unconstrained demand of 150mscuffs/day touted by KF!!). Good results = good gas = LNG = Europe? and integrate RSM or pay them off assuming financing can be sourced?
As a reminder from AFEX site, co-owner of Matanda - note have only firmed up 16% of the site:
In 2011 and 2014 ERCL, an independent specialist in upstream oil and gas consultancy, reviewed Glencore’s estimates of resources for the North Matanda Field and concluded that the P50 “gas-in-place” volume of 1,864 Bcf with “condensate-in-place” of 136 mmbbl were valid estimates for the area within the limits of the 3D seismic survey (note this is only 16% of the total area of the Matanda Block). ERCL also concluded that the North Matanda Field and the Logbaba Field are part of the same structure, now named the “Matanda – Logbaba Structure”, and that the reservoirs are likely to extend over a significant area outside of the limits of the 3D survey, making the North Matanda Field potentially one of the largest wet gas accumulations in West Africa.
Has vog gone burst?
Only the buttons. The shirt is invested elsewhere, fortunately.
Have we all lost our shirts?
Sounds mildly positive. Maybe we have a future after all! Doesn't read like much common ground has been gained though.
Wow, so how did they manage to get ( Matanda: Rig contract negotiations continue and the mobilisation of a rig to Douala is expected to be complete by end July, this being at the owner's own cost and risk. Site and access preparations will be somewhat hindered by the rainy season at this time of the year.)
But if they can get the owners to drill for free of charge then vog might be on to a winner !!!!!!!!!!
Probably down to a pipeline network, and Eneo not paying our bills. If GDC aren't powering the grid, who is and with what? HFO I assume. Also pondering any culpability on the royalty payments etc - how did that get past accountants??
I cannot believe that with the current world energy crisis, we are unable to sell more gas. We could sell all we could produce at well below global prices and still make a huge profit.
Yet we continue to limp along selling the same old amount of gas to the same old 30 local companies at the same fixed prices from years ago.
Something very very fishy going on here.
How's about give RMC Matanda in settlement. That's assuming they woul even want it. Or better still, give them Wesrned. Apparently it's a very valuable and sought after asset. Lol
Today's RNS suggests the company really are either in denial or delusional. "Business as usual" says Roy of the Rovers. Hmmm. Anything but normal methinks
Why not.
VOGs outcomes at present range from: 1. 'cease trading' 2.sell a bit/lot of Logbaba to RSM/Increase % of take and wobble on, with probably slow company erosion 3.Assuming drilling is going on in Matanda, then massive upside given gas prices/market and ideally perhaps farming in RSM as part of the debt settlement.4. As 3. with LNG entering the fray and less/no reliance on the 'huge local market'. Sp from zero to 'pick a figure'...hopefully above zero!