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INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2017

28 Sep 2017

Victoria Oil & Gas Plc, the integrated natural gas producing utility, today announces its unaudited interim results for the six months ended 30 June 2017.

Operational Highlights

  • Average daily Logbaba field gross production rate increased by 11.4% to 14.6mmscf/d (six months to 30 June 2016: 13.1mmscf/d).
  • 2,345mmscf of gross gas sold from Logbaba (six months to 30 June 2016: 2,282mmscf).
  • Completion of flow lines to the new wells.

 

Drilling Highlights

  • Completion of well La-107, drilled to 3,180m Measured Depth (“MD”), has been completed for production. Preliminary analysis indicated 35m of net gas sand in the Upper Logbaba Formation, plus 23m of net gas sand in the Lower Logbaba Formation. Flow test results were very positive with 54mmscf/d flowrate through 70/64ths inch choke and 146mmscf/d Absolute Open Flow (“AOF”) potential. First gas flowed to the processing plant for sale on 22 September 2017.
  • Rig skidded to La-108 to resume drilling operations. Sidetrack drilling has recommenced, where approximately 100m of net gas-bearing sands were encountered. At 26 September 2017, the rig is drilling ahead at 2,085m Measured Depth (“MD”).

 

Financial Highlights

  • $15.4 million Revenue (six months to 30 June 2016: $23.6 million).
  • $4.4 million EBITDA (six months to 30 June 2016: $14.2 million).
  • $25.2 million Net Debt position (at 31 December 2016 Net Cash: $1.8 million).
  • 5% Cameroonian State participation in Logbaba; 3% relinquished by Gaz du Cameroun S.A. (“GDC”).

 

Corporate Highlights

  • Farm-out agreement with EurOil Limited (“EurOil”), a Bowleven Plc subsidiary, under which a VOG subsidiary will acquire on completion an 80% working interest in the 2,237 km2 Bomono licence, adjacent to Gaz du Cameroun’s (“GDC”) Logbaba field. This transaction remains subject to Government approval.
  • Seismic interpretation on Matanda field (75% participating interest, subject to Government approval) shows considerable gas in place potential and several drilling targets.

 

Ahmet Dik, Chief Executive Officer of VOG, commented:

“The year has been very productive for the Company, with the delivery of very positive drilling results and the completion of well La-107, where we have encountered a combined 58m of net gas sands. Production flow testing has confirmed the commercial viability of the gas-bearing reservoir sands detected in the Upper and Lower Logbaba formations, and initial flows through the processing facility yielded positive results.

The developments at Logbaba are very encouraging as we take the first steps towards our longer-term ambition of producing 100mmscf/d. The Douala region alone continues to show a long-term demand for 150mmscf/d of natural gas, and we believe VOG is uniquely placed to take advantage of that market as the dominant onshore gas producer in country.”

Sam Metcalfe, the Company’s Subsurface Manager has reviewed and approved the technical information contained in this announcement.

 

For Full Results please see pdf document attached below.