14 Jun 2018 07:00
14 June 2018
Victoria Oil & Gas Plc
("VOG" or "the Company")
Restructure of the BGFI Debt Facility
Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor, is pleased to announce that, further to the operational update announced on 24 May 2018, its wholly-owned subsidiary Gaz du Cameroun S.A. ("GDC") has restructured its outstanding debt balance with BGFIBank Cameroon S.A. ("BGFI"), effective from 15 July 2018.
The initial debt facility, entered into on 4 April 2016, was for an amount of XAF 15 billion (approximately $26 million). The facility was fully drawn down in 2017 and, having enjoyed six months of interest only repayments, GDC has progressed to making monthly principal and interest instalments. The amount outstanding as at the date of restructuring was $20.5 million.
The material terms of the restructured debt facility are as follows:
· Loan tenure of five years from the date of the restructuring, which is 15 July 2018;
· An initial 12-month interest only period, then principal and interest thereafter;
· Interest on the debt to remain at Cameroon Bank Base rate of 9% less 1.85%, currently 7.15% per annum;
· Security is unchanged, namely a pledge over certain receivables, partially assigned insurance contracts and a letter of comfort from the Company; and
· No financial covenants in addition to those agreed in connection with the initial facility.
Andrew Diamond, Finance Director said,
"The restructuring of the BGFI debt facility is a substantial vote of support from our banker and a strong endorsement of our business in Cameroon."
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.