Victoria Oil & Gas Plc, the AIM quoted oil and gas exploration and development company with assets in Cameroon and the Former Soviet Union, announces that the Company has issued 63,500,000 ordinary shares to the Trustee of the Company's Employee Share Ownership Plan ("VOG ESOP"). A further 500,000 ordinary shares have been allotted to an advisor to the Company.
An application has been made to the London Stock Exchange for 64,000,000 ordinary shares to be admitted to trading on AIM and it is expected that admission will occur at 8.00 a.m. on 16 November 2011. Following admission, the Company will have 2,569,016,237 ordinary shares in issue. The new ordinary shares will rank pari passu in all respects with the existing ordinary shares.
In addition, the Company has been notified that on 9 November, Mr Grant Manheim, the Deputy Chairman of the Company, was awarded 4,800,000 ordinary shares by the VOG ESOP, which he sold at an average price of 4.12p per share to cover tax and other financial obligations.
Following this disposal, Mr Manheim remains interested in 1,717,304 shares in the Company, representing approximately 0.07 per cent. of the Company's issued share capital.
For further information, please contact:
Victoria Oil & Gas Plc - Tel: +44 (0) 20 7921 8820
Kevin Foo / Martin Devine
Macquarie Capital - Tel: +44 (0) 20 3037 2000
Jeffrey Auld / 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 is an independent oil and gas exploration and development 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 and all four exploration wells encountered gas. The Company drilled two successful development wells in 2009/10 and is now installing production facilities and a pipeline to serve industrial consumers of gas in Douala, anticipated to be complete by the end of 2011. The Company received an Exploitation Licence for the development of the Logbaba Field by Presidential Decree on 29 April 2011.
Logbaba has proven and probable reserves of 212 billion cubic feet of gas (35.3 million barrels of oil equivalent) and the Company expects gas sales of 8 million standard cubic feet per day ('mmscf/d') by the end of the first year of operations rising to 44 mmscf/d (7,300 barrels of oil a day equivalent) by the end of 2014. The pipeline has a capacity of 60 mmscf/d, which is anticipated to be of sufficient size for the Douala industrial market over the medium term.
The Company's current proved and probable reserves are sufficient to supply an average of 30mmscf/d for the next 20 years. In the longer term, as further reserves may be proven, gas may 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.
Condensate separated from the gas at the process plant will be stabilised and stored for export to the Sonara refinery at Limbe. Condensate production is forecast at the rate of 20 barrels per million cubic feet of gas.
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.
Reprocessing of 845km of 2D seismic has recently been completed and geophysical/geological modelling is currently underway. In addition, development studies are in progress to commercialise the Well-103 discovery and prospective resources.