Over £6 million raised through an equity placing to private and institutional investors
Funds to be used to bring forward revenue from Logbaba gas project in Cameroon ("Logbaba")
VOG positioning to play a key role in fuelling Cameroon's growing hydrocarbon and power markets
Victoria Oil & Gas Plc, the AIM quoted oil and gas exploration company with assets in Cameroon and the FSU, is pleased to announce that the Company has completed, conditional on admission, an equity placing of 141,327,058 new ordinary shares at a price of 4.25 pence per share (the "Placing") raising over £6 million before expenses through its brokers Fox-Davies Capital Limited.
The Placing will give the Company the opportunity to bring forward revenue generation from Logbaba by advancing the design and engineering of the downstream and marketing phase. First gas sales to industrial customers are currently anticipated by mid-2010 following completion of drilling and the design, engineering and installation of a gas-processing plant and the Company's own 15 kilometre gas pipeline.
Meanwhile, the Company is awaiting formal results of the review of its appeal on the Kemerkol legal case from the Kazakh Supreme Court.
Application will be made to the London Stock Exchange for these 141,327,058 new ordinary shares to be admitted to trading on AIM. It is expected that admission will become effective and that trading will commence on 4 September 2009. Following the admission, the Company will have 949,715,953 ordinary shares in issue. The new ordinary shares will rank pari passu in all respects with the existing ordinary shares.
Kevin Foo, Chairman of Victoria Oil & Gas, said today, "Our priority is to make VOG cash generative as soon as possible. A significant portion of the project timeline is taken up by conceptual design and engineering of the gas processing and pipeline. This fundraising compresses the project timeline by allowing us to start the downstream design before the two wells are completed."
For further information, please contact:
Victoria Oil & Gas Plc - Tel: +44 (0) 20 7921 8820
George Donne / Kevin Foo
Strand Partners Limited - Tel: +44 (0) 20 7409 3494
Simon Raggett / Angela Peace
Fox-Davies Capital - Tel: +44 (0) 20 7936 5220
Daniel Fox-Davies / Oliver Stansfield
Conduit PR - Tel: +44 (0) 20 7429 6607
Jonathan Charles / Ed Portman
Background Information on Victoria Oil & Gas Plc:
Victoria Oil & Gas is an independent oil and gas exploration and production 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 gas field 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 flowed gas at rates of up to 62 million cubic feet per day. West Medvezhye is situated in the prolific Yamal-Nenetsk hydrocarbon region in Siberia. An independent reserve audit estimated prospective resources for the field of over 1.1 billion barrels of oil equivalent.
Further information on the company can be found at: http://www.victoriaoilandgas.com