26 Jun 2018 07:00
26 June 2018
Victoria Oil & Gas Plc
("VOG" or "the Company")
Agreement on Exclusive Compressed Natural Gas ("CNG") partnership
Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor, is pleased to announce that its wholly-owned subsidiary Gaz du Cameroun S.A. ("GDC") has entered into an exclusive agreement to partner with Naturelgaz Sanayi ve Ticaret A.S. ("Naturelgaz"), Europe's largest CNG supplier and distributor. Naturelgaz is a 93.7% owned subsidiary of Global Investment Holdings ("GIH"), which is an investment company originated from and listed in Turkey (ticker: GLYHO) which focuses on clean-tech and infrastructure investment.
The purpose of this long-term partnership will be to:
· Design, build and operate compressed natural gas ("CNG") infrastructure and solutions for customers who need mobile energy, initially in GDC's home market of Cameroon with the intention of rolling this out into other African countries
· Market CNG products, including bulk CNG and gas-to-power to industry and businesses which require reliable off-grid / off-pipeline energy solutions, as well as Auto CNG for alternative mobility solutions
· Phase 1 agreed between the parties is a 2mmscf/d (21mscm/y) CNG plant and customer distribution project currently in design stage.
Naturelgaz, a 93.7% subsidiary of GIH, is Europe's largest CNG supplier and distributor in terms of mother station infrastructure and bulk sales volume. The company focuses on sales and distribution of bulk CNG to industrial and commercial customers - such as factories, power generators, hotels, asphalt plants - in addition to towns (households) not connected to natural gas pipelines.
Besides the distribution of Bulk CNG to industrial and commercial users, Naturelgaz also focuses on the development of the Auto CNG market in co-operation with CNG vehicle producers.
Kevin Foo, Chairman of Victoria Oil and Gas said, "The agreement to partner with Naturelgaz, starting in Cameroon, brings together GDC's upstream gas capabilities and experience of the Douala energy market with Naturelgaz' proven track record of delivering CNG solutions. We are excited to be adding CNG to our product mix."
Hasan Tahsin Turan, CEO of Naturelgaz said,
"As Europe's largest CNG player we possess significant know-how and expertise in developing and successfully managing complex CNG value chains. We value the high quality of proven gas reserves and the existing asset base of GDC. In partnership with GDC, Naturelgaz will provide CNG energy solutions to where they are needed most - countries like Cameroon with limited energy infrastructure and a huge gap between energy demand and supply.
We are enthusiastic about the tremendous growth opportunities this partnership offers and we are keen bring in our know-how, capital and long-term commitment."
This announcement contains inside information.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Kevin Foo / Ahmet Dik Tel: +44 (0) 20 7921 8820
Strand Hanson Limited (Nominated and Financial Adviser)
Rory Murphy / Angela Hallett / Ritchie Balmer Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Joint Broker)
Mark Percy / Toby Gibbs (corporate finance) Tel: +44 (0) 207 408 4090
Jerry Keen (corporate broking)
FirstEnergy Capital LLP (Joint Broker)
Jonathan Wright / David van Erp Tel: +44 (0) 207 448 0200
Camarco (Financial PR)
Billy Clegg Tel: +44 (0) 203 757 4983
Nick Hennis Tel: +44 (0) 203 781 8330
NOTES TO EDITORS:
Victoria Oil & Gas Plc ("VOG" or "the Company") is a fully-integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon. Through the Company's wholly-owned subsidiary, Gaz du Cameroun S.A. ("GDC"), VOG delivers gas via a 50km gas distribution pipeline network to a range of major industrial customers.
Since spudding its first wells in 2010, the Company has grown to become the dominant player in the Cameroon onshore gas market, primarily through the 57% owned Logbaba gas project. GDC is partnered on this project with RSM Production Company ("RSM"), and Société Nationale des Hydrocarbures ("SNH"), who have holdings of 38% and 5% respectively.
Subject to government approval VOG will extend it acreage over the highly prospective Douala Basin with the addition of the Matanda license area.
Victoria Oil & Gas is listed on the AIM market of the London Stock Exchange under the ticker VOG.
Global Investment Holdings (GIH)
GIH is a diversified conglomerate with investments in several businesses including infrastructure, real estate, energy and financial services. GIH has a total asset size of TL4.5 billion and shareholders equity of TL1.6 billion. It's flagship company, Global Ports Holding, the largest independent cruise operator in the world completed its IPO on the London Stock Exchange in May 2017 and has a market capitalisation of £305 million.
(LON: GPH).