Victoria Oil & Gas reports maiden annual revenue in transitional year

Victoria Oil & Gas reported a maiden annual revenue of nearly seven million dollars after a transitional year in which moved from an exploration to a production company.The AIM-listed group generated revenue of $6.93m in the year ended May 31st, derived from its flagship Logbaba gas and condensate field in Cameroon.The loss before tax more than doubled from $7.73m to $15.94m after higher costs as it moved to production, while administration costs increased from $4.5m to $11.2m. The firm said it expects to see decreases in spend per unit of production in the coming year as it implements cost-cutting measures.Net cash used in operating activities totalled $13.44m, compared with $4.54m generated the year before.Addressing shareholders in a statement, Chairman and Acting Chief Executive Kevin Foo said that it was a "challenging" year for Victoria: "Like you, I am concerned about the low share price, which I believe grossly undervalues our business and does not reflect the company's achievements to date." The stock has been under pressure since the start of the year, falling nearly 50% since the start of January.Foo reiterated Victoria's objective - to use cash flow from its flagship Logbaba project in Cameroon to fund further expansion in Africa - and said that the company is "at the forefront of an energy revolution" across the continent.The stock was up 1.57% at 1.16p in early trading on Friday.BC