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Interim Results for six months to end June 2016

26 Sep 2016

Victoria Oil & Gas Plc, the integrated natural gas producing utility, today announces its unaudited interim results for the six months ended 30 June 2016.

In the prior year the Company changed its accounting reference date to 31 December. These interim results report on the six-month period to 30 June 2016, with the comparative period covering the six-month period ended 30 November 2015. Owing to the seasonal nature of our business, where production statistics are reported they will be compared to the equivalent six-month period to 30 June 2015, to provide a more accurate comparison. 

Financial Highlights
  • $23.6 million Revenue (six months to 30 November 2015 was $18.9 million)
  • $14.2 million Adjusted EBITDA (six months to 30 November 2015 was $7.9 million)
  • $1.9 million Net cash position (at 31 December 2015 was $6.0 million)
  • $9.0 million Net cash position at 23 September 2016
  • Cost recovery milestone reached on Logbaba Gas and Condensate Project on 31 May 2016 after which revenues will be shared in accordance with the participating interests 
Operational Highlights
  • 93% average daily production rate increase to 13.1mmscf/d (six months to 30 June 2015 was 6.8mmscf/d)
  • 2,282mmscf of gas sold (six months to 30 June 2015 was 1,525mmscf)
  • Phase II Bonaberi pipeline expansion well underway to connect new thermal customers
  • Major drilling preparation work completed, drill rig arrived and is being commissioned
Corporate Highlights
  • 75% interest in the Matanda Production Sharing Contract assigned to the Group
  • $26 million debt facility secured to support Logbaba expansion
  • Group CEO appointed - Ahmet Dik; Group Finance Director appointed – Andrew Diamond
Post Balance Sheet Events
  • Settlement reached over the reserve bonus dispute and termination of 1.2% royalty
  • Full settlement of receivable from RSM Production Corporation
  • Roger Kennedy appointed as independent Non-Executive Director

Kevin Foo, Executive Chairman said, 

"The first half of 2016 has been a stabilising period in the Company, as we deliver on our strategy to increase production and grow our pipeline network in Douala, Cameroon. Our market assessment indicates a growing demand for our gas, for both thermal and grid power markets. The Matanda acquisition was a major extension of our influence in the region, whilst the drilling programme is expected to unlock new reserves for sale to customers. The preparation for drilling at our existing Logbaba production site is complete, and spudding is expected shortly. Expansion work on the Bonaberi pipeline is on track, and with Gas Sales Agreements in place, we expect to deliver to these new customers before the end of the year. As we deliver on our expansion targets, we will look to increase the process plant’s capacity. The settlement of the reserve bonus and termination of the 1.2% royalty was an important matter to resolve and will mean greater revenue for the Company going forward.”


Please see pdf attached below for full results.