Member Info for JRich20020

There's only 1 share. VOG own it now. Therefore 100%. Kate was the original subscriber.

It's not likely to have anything to do with upstream downstream activity. That would have had to be incorporated in Cameroon and can all be handled in the GDC companies. It's just an accounting split in reality.

I would suggest this is possibly a holding company for African assets, or some kind of marketing/admin setup to promote VOG there. Also possibly a start in ringfencing different regions. Maybe they've been looking at other African assets as MD pointed out and they are close to a new venture.

Intriguing. I have a hunch we will be pleasantly surprised. Roy has a lot of balls in the air and I'm sure we haven't been told of some yet.

I don't read it that way. This comment is, I believe, in the historical context of resuming back in 2019. ENEO didn't like the fact they had signed up for take or pay or didn't understand the significance, and have commented on paying for something they haven't received the past. Hence the wrangling over the outstanding invoices. I don't think there is any intention to supply gas for power from Logbaba any more. twice bitten etc and it's essentially reserved for higher margin commercial customers as they can make 2 to 3 times as much from the same volume. According to their latest reserves they don't really have spare for power and they won't be drilling again in a hurry. Better to re-focus on CNG as the margins are even larger.
Gas for power will either come from Matanda or Etinde in due course.
In any case are there any generators still in the country? Hasn't Altaaqa removed them and what are the chances of them returning?

Need to bear in mind that the legal and professional fees for all the ongoing activities must be substantial. They are also preparing for Matanda drilling with long lead items being ordered and needing to be paid for soon, and I guess a deposit on a rig. Not a huge amount borrowed in the scale of things.

You might ask yourself where the unsolicited interest came from and why Gazprom are planning to explore a block which is close to or possibly adjacent to west med and the processing facilities of the Medvezhye field, if it is so expensive. WM would most likely be a good fit. Prospective reserves of c 1.4bn boe. And these are v. conservative as published figures.

100's if not 1000's of successful wells have been drilled on that peninsular in 3 supergiant gas fields so the geology is well known. The big players should be able to maximise the opportunity, and at lower cost, in a way that might not be possible to VOG.

This article was just before VOG announced the interest.
https://www.upstreamonline.com/exploration/gazprom-targets-exploration-in-region-with-huge-gas-projects/2-1-766554
I've only seen these headlines but it's clear enough where the location is.

The problem VOG had was mainly, I believe, a market access and distribution cost one using Gazprom's processing and distribution network and the low end price they would get from the power station they had lined up.

I don't believe they would have engaged the agency they have if there wasn't a serious prospect of selling and I doubt it will go for peanuts either.

I was doing a bit of research on the West Med location when I came across this.

https://www.upstreamonline.com/exploration/gazprom-targets-exploration-in-region-with-huge-gas-projects/2-1-766554

I can't find anything directly about the Pandinsky block mentioned but since there are major gas fields to the north and east and there is a national park and smaller gas field to the south of medvezhe, it looks probable that it is close by or adjoining West Med in the area between Nadym and Medvezhe. Roy mentioned unsolicited interest and it seems likely this is why. Makes sense to combine the whole lot into a bigger project. With Medvezhe in decline and all the infrastructure in place and nearby it would be a low(er) cost development to replace lost production.

Check out google earth - you can see all the gas field infrastructure for the main fields, medvezhe, yamburg and urengoy and zoom in on the processing plants. Medvezhe runs north from Pangody to the coast. Yamburg is north of that and Urengoy (at one time the largest gas field in the world) is to the east and north east.

I can't see a sale not going through in the light of this. But I can see why there wasn't much interest before. Too many big gas projects in the wider region.

I take your point but I had a quick look and the requirement was to submit id's with questions so it would be reasonable that only those people would get responses before the meeting. Essentially to put them in the same position as they would have been if they had been able to attend. It only said a response would be made before the meeting not that they would be published to all.
It's a moot point now, but if they didn't send them to those registered that then clearly it's a poor show. I expect to see the Q&A on the website as soon as possible as no doubt you do too.

Looks like they were only going to be sent to those who registered. Makes sense not to publish them generally before the meeting.

are on the website.

They lost 7m after charging 10.4m non cash items. Depreciation,amortisation and other asset write offs. At the operational level they are cash generative. Assuming payment of course. Admin costs should be significantly lower in H2. H1 had office move placement costs payoffs. I reckon about 10m in a full year. 4m reported in H1. 6m in H2 with lower costs and higher sales. All imo.

A placement. A large chunk of it will be placement fees. Also they moved offices during the period. second half year should be much lower.

To clarify an earlier post . Depreciation and amortisation are both write offs of past capitalised expenditure and have no current period cash implications. Better to look at the ebitda figure which does not include them.

From the same RNS.

I would say industry partner/asset level deal = farm out. Could have been clearer.

The Company's preferred route of financing is to conclude a transaction with an industry partner on terms that are favourable to shareholders, and that may obviate or minimise the need for further equity financing. However, depending on the terms of the asset-level deal achieved, it may also be necessary or in shareholders' interests to raise a portion of the additional finance via the issue of further corporate equity.

https://www.proactiveinvestors.co.uk/register/event_details/217

The details are in the rns of 6th march. And details of the lockin.

Just to divert your attention from today's update for a minute.

I happened to go past HH yesterday and no sign of VOG. It looks like the lease may have been up and the building has had some refurb work done on it recently. A quick google later showed all floors were available to rent.

Apologies if this has been posted before.

It seems VOG has been expanding without our knowledge (or I've missed a few years).

http://www.victoriaoilgas.com/services-2/

I assume it's a spoof website - no 'and' in web address.

Anyone know any more about this?

I'm not sure what value payment guarantees are unless given by Cam govt and or Actis as guarantors. If Eneo can't pay they won't be worth anything if given by them.

You need to look at the detail for 2016. EBITDA i.e profit before interest depn and tax was 13.1m. The loss for the year was writedowns and buying out a long term liability.

H1 2018 showed a turnover of 5m and positive ebitda. 2nd half volumes were higher so is reasonable to assume same.

depn is not a cash item so adjusting for interest a breakeven turnover of around 13-15m. Now doing around 24m or more, so 10m t/o at say 60% margin to the bottom line. The bulk of the cost of sales are fixed costs i.e wages and salaries so 60% is a reasonable conservative estimate. Variable costs are royalties and any volume related processing costs.

so 6m as a minimum bottom line figure seems reasonable.

You've answered your own question.

'Why aren't other employees or people with a knowledge of what's going on buying - it says it all sadly.'

Too much price sensitive knowledge around at the moment would be my guess.

What price West Med? We can only guess. Directors and others have that knowledge.

Dibamba? What's the deal, if any.

Bassa? When, and if.

Just look at it as positive sign. Director buying is a sign of weakness.

correction 2m *12/365. I reckon they are making 7-10m net after interest. Also 2m a month is, I reckon, a conservative figure.

65750 is VOG's share. 2m a month * 24 / 365.