2018 Plan as of 16 Fed 20187 Apr 2018 14:50
VOG has set an ambitious business strategy with gas sales targets building up to 100mmsc/d by 2021. The Board still believes that this target is achievable and that the demand for gas within Cameroon remains robust, however this will require positive resolution of the current problems.
The Company has revised its Operating Plan for 2018, of which key elements are:
Renew the gas supply contract with ENEO as soon as practicable and add further grid power, including new contracts with DPDC and Grenor, but with greater price and payment security
Sell more thermal gas to existing and new customers by working closely with them to create cost effective energy solutions
Work with existing and new customers to create bespoke gas to power solutions with individual generator designs, mini grids and shared power from centralised generators. These solutions will allow customers to be less dependent on grid power
Maximise return from our high-grade gas condensate. Our condensate is very high grade (47 API) and close in composition to diesel. We currently sell condensate at near to crude oil prices, which is about half the price of diesel
Actively develop the CNG and Natural Gas Vehicle (NGV) markets. CNG would compete with diesel as a source of energy in the more remote regions, it offers considerable uplift on current margins and can be transported 250-300km
Sustain progress on the promising Matanda and Bomono opportunities
Review capital projects, operational and G&A expenditure rigorously to preserve cash
A provisional production target to be achieved, should ENEO not resume gas consumption in 2018 and assuming increased thermal, gas to power and CNG project implementations, has been set at 9mmscf/d by year end 2018. Should ENEO resume full production in Q2 2018, the end of year target would be 13mmscf/d.
http://www.victoriaoilandgas.com/investors/news/q4-2017-operations-update-and-2018-outlook
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