5 Jul 2019 12:30
5 July 2019
Victoria Oil & Gas Plc
("VOG" or the "Company")
Post-AGM Q2 2019 Operations Update
Victoria Oil & Gas Plc, whose wholly-owned subsidiary, Gaz du Cameroun S.A. ("GDC"), the fully integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to provide an update on the 27 June 2019 announcement (that included gas production and sales figures from 1 April to 25 June inclusive) to include the full production and sales figures for the period from 1 April to 30 June 2019 inclusive ("Q2 19" or "the Quarter").
Highlights:
· Overall Q2 19 average gas production rate during the period of 9.66 mmscfd (Q1 19: 10.10 mmscfd)
· Q2 19 gross gas sales of 882mmscf (Q1 19: 903mmscf)
· ENEO Cameroun S.A ("ENEO") payments received for January and February 2019, with management confident that regular payments will be in line with the existing binding term sheet
Logbaba - Quarterly Production Update
Q2 19 (1 April 2019 to 30 June 2019) gross and net gas and condensate sales at Logbaba are as follows:
Amounts in bold are gas and condensate sales attributable to GDC (57%):
| Q2 2019 | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 | |||||
Gas sales (mmscf) |
|
|
|
|
| |||||
Thermal | 206 | 361 | 211 | 370 | 200 | 352 | 194 | 341 | 174 | 305 |
Industrial power | 14 | 25 | 14 | 25 | 15 | 27 | 9 | 15 | 9 | 15 |
Grid power | 283 | 496 | 290 | 508 | 15 | 25 | 0 | 0 | 0 | 0 |
Total (mmscf) | 503 | 882 | 515 | 903 | 230 | 404 | 203 | 356 | 183 | 320 |
Average gas production (mmscfd) | 9.66 | 10.10 | 4.45 | 3.72 | 3.30 | |||||
Condensate sold (bbl.) | 3,451 | 6,055 | 3,825 | 6,710 | 2,701 | 4,738 | 2,298 | 4,032 | 1,657 | 2,907 |
Grid Power Update
The Company is pleased to announce that further to the 27 June 2019 announcement, in which VOG detailed that it had received the ENEO invoice for January 2019, the Company has received further payment from ENEO to settle the February 2019 invoice totaling $0.8 million (net). An amount of approximately $2.6 million (net) remains outstanding, not including amounts to be invoiced for June.
Now that all the necessary financial processes have resumed, the GDC management team is confident that all future ENEO payments will be forthcoming in accordance with the existing binding term sheet. As noted in the announcement of 27 June 2019, this term sheet will soon be supplemented by a fully termed agreement and payment guarantee.
Cameroon Holdings Limited ("CHL") Royalty Agreement
CHL has commenced proceedings against both Gaz du Cameroun S.A and Victoria Oil and Gas Plc with regard to payments CHL believes it is entitled to under the Royalty Agreement. The Company proposes to vigorously defend such claim and is currently preparing its defense. Further updates as required will be made in due course.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please visit www.victoriaoilandgas.com or contact:
Victoria Oil & Gas Plc
Ahmet Dik Tel: +44 (0) 20 7921 8820
Kate Baldwin
Strand Hanson Limited (Nominated and Financial Adviser)
Rory Murphy / James Dance / Jack Botros Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Joint Broker)
Mark Percy / Toby Gibbs (corporate finance) Tel: +44 (0) 20 7408 4090
Jerry Keen (corporate broking)
FirstEnergy Capital LLP (Joint Broker)
Jonathan Wright / Hugh Sanderson Tel: +44 (0) 20 7448 0200
Camarco (Financial PR)
Billy Clegg Tel: +44 (0) 20 3757 4983
Nick Hennis Tel: +44 (0) 20 3781 8330