3 Apr 2012 07:00
3 April 2012
Victoria Oil & Gas Plc
('VOG' or 'the Company')
(AIM: VOG)
Application for Listing of shares and Directors' shares interests
Victoria Oil & Gas Plc, the AIM quoted oil and gas exploration and production company with assets in Cameroon and the FSU, announces that shares have been allotted to certain Directors and employees in lieu of a cash salary for the six month period ended 31 January 2012. In addition, new ordinary shares have been allotted to certain of the Company's suppliers in lieu of cash payments for services.
As of 30 November 2011, the Company had a cash position of $8.4 million and the agreement for certain payments in equity allows the Company to focus funds on the increase of both production and revenues from its assets in Logbaba, Cameroon, while maintaining a healthy cash balance.
Logbaba began first commercial production and delivery of gas on schedule in December 2011, becoming the first onshore gas and condensate producer in Cameroon. Production is expected to grow from 8 million standard cubic feet per day ('mmscf/d') by the end of 2012, to 44mmscf/d by the end of 2014.
Details of Allotment and Admission to Aim
A total of 1,749,677 shares have been allotted to certain Directors and employees at a weighted average month-end market price of 3.8 pence per share.
In addition, 30,951,350 new ordinary shares have been allotted to suppliers for services provided at a price of 4.0 pence per share.
The effect of the above allotments on the disclosable interests of directors of the Company is as follows:
Shares subscribed | Total Shareholding in VOG following allotments | ||
Kevin Foo* | 657,541 | 53,313,140 | 2.05% |
Robert Palmer | 159,856 | 1,290,470 | 0.05% |
\* The shares are held by H J Resources Limited on behalf of a discretionary trust, of which Kevin Foo and his wife are potential beneficiaries.
Application has been made to the London Stock Exchange for 32,701,027 ordinary shares to be admitted to AIM. Admission is expected to become effective and dealings in the shares are expected to commence at 8.00 a.m. on Thursday, 5 April 2012. Following admission of these shares, the Company will have 2,601,717,264 ordinary shares in issue. The new ordinary shares will rank pari passu in all respects with the existing ordinary shares.
The aforementioned figure of 2,601,717,264 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, VOG under the Financial Services Authority's Disclosure and Transparency Rules.
For further information, please contact:
Victoria Oil & Gas Plc - Tel: +44 (0) 20 7921 8820
Kevin Foo / Martin Devine
Macquarie Capital (Europe) Limited Tel: +44 (0) 20 3037 2000
Jeffrey Auld / Steve Baldwin / Nicholas Harland
Fox-Davies Capital - Tel: +44 (0) 20 3463 5010
Daniel Fox-Davies/ Richard Hail
Strand Hanson Limited - Tel: +44 (0) 20 7409 3494
Simon Raggett / Angela Peace
Tavistock Communications - Tel: +44 (0) 20 7920 3150
Ed Portman/ Paul Youens
Background Information on Victoria Oil & Gas Plc:
Victoria Oil & Gas Plc is an independent oil and gas exploration and production company with projects in Africa and the FSU. The Company's principal assets are the Logbaba gas and condensate project in Cameroon and the West Medvezhye project in Siberia, Russia. Logbaba is located in Douala, the economic capital of Cameroon. The field was discovered in the 1950s when all four exploration wells drilled at the time encountered gas. The Company drilled two successful development wells in 2009/10 and was awarded an Exploitation Licence in April 2011.
The Company's Logbaba proved and probable reserves are sufficient to supply an average of 30mmscf/d for the next 20 years to industrial customers. Under current management projections, the Company forecasts industrial gas demand to rise to 44mmscf/d by the end of 2014. In the longer term, as further reserves may be proven, gas may also be supplied to large gas fired power stations connected to the grid, with either VOG investing in an independent power producer joint venture or selling the gas to third parties. The Company has signed a multitude of gas sales agreements with industrial customers to serve their energy requirements and anticipates in excess of 40 customers over the medium term.
West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent audit, carried out by Mineral LLC in 2011, estimated prospective resources for the area of over 1.4 billion barrels of oil equivalent. The Company also has a discovery well, 103, with C1 and C2 reserves, independently assessed under the Russian classification convention of 14.4 million boe as approved by the Russian Ministry of Natural Resources.
Development studies are in progress to commercialise the Well-103 discovery and prospective resources and a detailed well design study for the upcoming drilling campaign has commenced.