LONDON (Alliance News) - Victoria Oil & Gas PLC Friday said its subsidiary Gaz du Cameroun has become cash flow positive following a major deal to provide Socaver with gas earlier in February.
The African energy utility company said Gaz du Cameroun has averaged 3.2 million square cubic feet per day of gas production during February, compared with 2.6 million square feet per day figure in October 2013, allowing it to break-even for cash flow.
The company said the production rate has been achieved following increased usage by existing customers in connection with a deal it made with Socaver, a subsidiary of South African Brewing Company Pty Ltd, earlier in February.
Under the deal, Gaz du Cameroun supplies thermal gas for up to six burners to Socaver, following Socaver's recent conversion to gas from heavy fuel oil, a process which Gaz du Cameroun took part in.
The Socaver plant is expected to consume an average of 400,000 square cubic feet per day, running 24 hours per day, with peak demand estimated at 764,000 square cubic feet per day.
The company said it is now looking to build on this momentum, securing new customers and installing gas-fired generators at existing customers' sites.
Victoria Oil & Gas shares were up 5.8% to 1.38 pence in early trading Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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