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Post-AGM Q2 2019 Operations Update

5 Jul 2019

Victoria Oil & Gas Plc, whose wholly-owned subsidiary, Gaz du Cameroun S.A. (“GDC”), the fully integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to provide an update on the 27 June 2019 announcement (that included gas production and sales figures from 1 April to 25 June inclusive) to include the full production and sales figures for the period from 1 April to 30 June 2019 inclusive (“Q2 19” or “the Quarter”). 

 

Highlights:

 

  • Overall Q2 19 average gas production rate during the period of 9.66 mmscfd (Q1 19: 10.10 mmscfd)
  • Q2 19 gross gas sales of 882mmscf (Q1 19: 903mmscf)
  • ENEO Cameroun S.A (“ENEO”) payments received for January and February 2019, with management confident that regular payments will be in line with the existing binding term sheet

 

Logbaba - Quarterly Production Update

Q2 19 (1 April 2019 to 30 June 2019) gross and net gas and condensate sales at Logbaba are as follows:

 

Amounts in bold are gas and condensate sales attributable to GDC (57%):

 

 

Q2 2019

Q1 2019

Q4 2018

Q3 2018

Q2 2018

Gas sales (mmscf)

 

 

 

 

 

Thermal

206

361

211

370

200

352

194

341

174

305

Industrial power

14

25

14

25

15

27

9

15

9

15

Grid power

283

496

290

508

15

25

0

0

0

0

Total (mmscf)

503

882

515

903

230

404

203

356

183

320

Average gas production (mmscfd)

9.66

10.10

4.45

3.72

3.30

Condensate sold (bbl.)

3,451

6,055

3,825

6,710

2,701

4,738

2,298

4,032

1,657

2,907

 

Grid Power Update

The Company is pleased to announce that further to the 27 June 2019 announcement, in which VOG detailed that it had received the ENEO invoice for January 2019, the Company has received further payment from ENEO to settle the February 2019 invoice totaling $0.8 million (net). An amount of approximately $2.6 million (net) remains outstanding, not including amounts to be invoiced for June. 

 

Now that all the necessary financial processes have resumed, the GDC management team is confident that all future ENEO payments will be forthcoming in accordance with the existing binding term sheet. As noted in the announcement of 27 June 2019, this term sheet will soon be supplemented by a fully termed agreement and payment guarantee.

 

Cameroon Holdings Limited (“CHL”) Royalty Agreement

 

CHL has commenced proceedings against both Gaz du Cameroun S.A and Victoria Oil and Gas Plc with regard to payments CHL believes it is entitled to under the Royalty Agreement. The Company proposes to vigorously defend such claim and is currently preparing its defense.  Further updates as required will be made in due course.

 

 

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

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190705 post AGM Q2 19 Ops_FINAL.pdf196.07 KB