Victoria Oil & Gas signs deals and receives first dispute cash

Explorer and producer Victoria Oil & Gas (VOG) signed two key customer agreements and received cash from an arbitration to make up for flat daily production levels as a customer's expected plant was not delivered.AIM-listed VOG, which has interests in Cameroon and Siberia, signed a collaboration agreement with Cameroon's sole electricity utility AES-Sonel to work together to convert currency hydro-electric plants to gas-fired generation.The company admitted year end daily production levels remained in the 2.5 to 3.0m standard cubic feet per day (mmscf/d) range because a Cameroon glass manufacturer customer Socaver did not commission a new plant as expected and some customers had significantly reduced consumption over the holiday period. In particular, VOG's largest customer had also agreed to supply thermal gas for cement manufacture Dangote, with second-quarter connection anticipated.The company received first cash, $4.1m, as the result of an arbitration against RSM Production over a long-running gas field ownership dispute in Douala.Shares in VOG were up 8.6% to 1.18p at 15:30 on Wednesday. OH