21 Feb 2014 07:00
Victoria Oil & Gas PLC
21 February 2014
(AIM: VOG)
Victoria Oil & Gas Plc
Operational Break-even Achieved, Cameroon
Highlights
· Gaz du Cameroun operational break-even on a cash flow basis achieved
· Average 3.2mmscf/d rate achieved to date during February 2014
Victoria Oil & Gas Plc ("VOG" or "the Company"), the emerging African energy utility company, today announces that gas supplied to customers by the Company's operating subsidiary, Gaz du Cameroun ("GDC"), has averaged 3.2mmscf/d for February production to date. At this supply rate the Company is pleased to confirm that GDC is now above break-even on a cash flow basis.
This production rate has been achieved following increased usage by existing customers in combination with a major new connection made this month with Socaver, a bottle manufacturing plant and subsidiary of Cameroon's largest brewer Societe Anonyme des Brasseries du Cameroun ("SABC").
The average production rate of 3.2mmscf/d is an increase of 0.6mmscf/d from the 2.6mmscf/d figure announced in October 2013. The rate has been calculated by dividing accumulated daily production volumes by days under consideration and includes weekends and holidays when consumption is at reduced levels.
GDC has recently secured new customers including Dangote, Quality Habitat and Buetec for thermal gas provision. Gas fired generator ("Genset") installations are currently underway at existing customers' sites.
A dedicated team has been allocated to work with AES-Sonel, the national electricity supply utility. The plan is to provide gas - fired electricity generation at two existing power plants in the Douala area. The plants currently rely on heavy fuel oil to generate electricity for the local grid.
Commenting on the announcement today the Company's Chairman, Kevin Foo, said: "After making major changes within VOG and GDC, we are now seeing real increases in gas supply volumes. Achieving operational cash break-even is also an important milestone and we look forward to building on this momentum."
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Kevin Foo/Chane Brooks/Laurence Read Tel: +44 (0) 20 7921 8820
Fox-Davies Capital
Daniel Fox-Davies Tel: +44 (0) 20 3463 5010
Strand Hanson Limited
Angela Hallett / Stuart Faulkner Tel: +44 (0) 20 7409 3494
Tavistock Communications
Ed Portman / Conrad Harrington / Simon Hudson Tel: +44 (0) 20 7920 3150