(Alliance News) - Victoria Oil & Gas PLC on Monday said first half revenue more than doubled due to renewal of a gas sales contract with ENEO Cameroon SA but an impairment charge led to a widened loss.
In the six months to June 30, revenue rose to USD10.7 million from USD5.0 million, which the company attributed to the ENEO gas sales deal. Its pretax loss however widened to USD7.8 million from USD3.8 million.
Contributing to the increased loss was a sharp rise in administrative expenses to USD6.7 million from USD3.2 million and USD5.6 million in impairment costs related to its investment in oil & gas firm Cameroon Holdings Ltd.
Victoria Oil and Cameroon Holdings are currently locked in a dispute after the former in January stopped making payments that were part of a royalty agreement.
Average daily gross production in the Logbaba field in Cameroon soared to 9.9 million standard cubic feet per day from 3.4 million standard cubic feet per day in the first half of 2018.
Gross gas sold also rose sharply to 1.79 billion standard cubic feet per day from 650 million standard cubic feet per day.
In July, Victoria Oil announced it signed a term sheet to supply Turkish firm Aksa Enerji Uretim SA's with up to 25 million standard cubic feet per day of gas for its planned power station in Douala, Cameroon.
Executive Chair Roger Kennedy said: "I am pleased with the progress to date and the extra effort management is putting toward continued growth for the company. Signing of the term sheet with Aksa Energy is very positive and bringing that to fruition alongside additional increasing production with thermal customers will be the focus over the coming twelve months."
Shares in Victoria Oil closed 5.0% higher at 8.68 pence each in London on Monday.
By Eric Cunha; ericcunha@alliancenews.com
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