Victoria Oil & Gas Plc (Victoria) has become a significant domestic energy supplier in Africa through its wholly owned subsidiary: Gaz du Cameroun S. A. (GDC).
With operations located in the industrial port-city of Douala, Cameroon, customers are converting their operations to take natural gas supplied by our production wells and pipeline infrastructure.
GDC is the sole gas supplier in the area, providing a cheaper, more efficient, reliable, and cleaner energy alternative to Heavy Fuel Oil use.
Our teams of engineering advisors are on hand to help customer’s cost and implement the change to GDC’s energy products.

Victoria Oil & Gas is traded in the NEX Exchange HERE

Link-HISTORICAL NEWS,VIDEO/AUDIO & EVENTS

Link-Dedicated Posts for:
Gaz du Cameroun S.A. (“GDC”)
Gaz Du Cameroun Matanda S.A. ("GDC Matanda")

Link-Cameroon-Industrialisation Master Plan (PDI) & Africa Energy

NEWS

21st Jan 2019 Production Update
17th Jan 2019 Q4 2018 Operations Update
02nd Jan 2019 Presidential Decree on Matanda Received
24th Dec 2018 Renewal of Long-Term Gas Supply Contract with ENEO
28th Sep 2018 INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2018
17th Aug 2018 Q2 2018 Operations Update
22nd Jun 2018 Report and Accounts to 31 December 2017
14th Jun 2018 Restructure of the BGFI Debt Facility
04th Jun 2018 Notice of Annual General Meeting
04th June 2018 Logbaba Field Reserves Update
24th May 2018 Q1 2018 Operations and Outlook
16th Feb 2018 Q4 17 Operations Update & 2018 Outlook Replacement
05th Jan 2018 Gas Supply Contract with ENEO Not Extended



VIDEO/AUDIO

21st Jan 2019 Victoria Oil & Gas looks ahead to increased cash flow
24th Aug 2018 Victoria Oil & Gas confident of resolving ENEO contract 'within weeks'
22nd Apr 2018 Video from 21/04/2018 UK Investor Show
16th Feb 2018 Victoria Oil & Gas confident of positive outcome to ENEO issue
08th Nov 2017 Victoria Oil & Gas reports very pleasing initial results from La-108
31st Oct 2017 21 Oil and Gas - African Power Panel
30th Oct 2017 121 Oil & Gas Investment
26th Oct 2017 Victoria Oil & Gas raises US$23.5mln to accelerate new growth programme
26th Sep 2017 Victoria Oil & Gas to finalise long term supply contracts after first gas at LA-107
17th Aug 2017 Victoria Oil & Gas expecting La-107 to be a 'substantial' producer
16th Apr 2017 Video from 01/04/2017 UK Investor Show
13th Apr 2017 'It's been a terrific year and a great quarter', says Victoria Oil & Gas' Kevin Foo
06th Mar 2017 Farm-out deal 'a really good strategic move' for Victoria Oil & Gas, says chairman Kevin Foo
06th Feb 2017 Chairman runs Proactive through the good start to 2017

EVENTS

28th Jun 2018 Annual General Meeting ("AGM")
10th May 2018 Africa Oil & Power Investor Forum-London
21st Apr 2018 UK Investor Show
11th-12th Apr 2018 Africa Investment Exchange: Gas (AIX: Gas 2018)-London
09th-10th Nov 2017 The Cameroon Investment Forum(CIF)-Cameroon
30th-31st Oct 2017 121 Oil & Gas Investment-London
23rd-27th Oct 2017 Africa Oil Week 2017-Cape Town South Africa
07th Sep 2017 One2One Investor Forum - London
05th Sep 2017 Oil Capital Conference-London
28th Jun 2017 Annual General Meeting
01st Apr 2017 UK Investor Show
9th Feb 2017 Presentation slide show for One2One
9th Feb 2017 One2One Investor Forum - London

Social Media
    

Old news but just getting published in the trade magazines:

Video: Altaaqa installs 50MW gensets in Cameroon
by John Bambridge on Aug 20, 2015

UAB-based Altaaqa Global has commissioned 50MW of temporary power in Cameroon – across two sites: Logbaba and Bassa (Ndokoti) – to supply the major Cameroonian commercial city of Douala.

The gas-fired Caterpillar gensets, which were installed over the span of just 21 days, are engineered to emit only 250 mg/Nm3, even without after-treatment.

The project, Altaaqa’s first project in the country, was conducted at the behest of state utility Eneo Cameroon, and will be supplied by Gaz du Cameroun (GDC), a subsidiary of Victorial Oil & Gas (VOG).

VOG CEO Kevin Foo heralded the project, Altaaqa’s first in the country, as a “true game-changer”.



Modular power solutions are proving to be a fast and efficient solution to Africa’s burgeoning power shortages, which pose a real threat to businesses and economic growth across dozens of countries.

Cameroon gets 75% of power from hydroelectric dams, which are highly seasonal, with stream rates varying from 6,000m3 per second in the wet season to just 50m3 per second in the dry season.

As in many countries, gas provides a conveninent stop-gap for lacunas in renewable energy sources.

GDC will supply the gas for the temporary power sites from its onshore Logbaba Gas Project through a 32.9km pipeline network built by the utility in Douala.

Altaaqa Global was previously highly commended at the 2014 Energy Institute Awards, for providing a temporary 54MW power plant in Aden, Yemen over the course of a 23-day installation.

The success of the project prompted the Yemeni government to add a further 50MW to the installation, raising its total capacity to 104MW.



also get a mention here :

20/08/2015



17/08/2015

For information and will add to the 'Cameroon:Dibamba Power Station' post found on Page 6.

Cameroon: Dibamba Power Plant
PUBLIC-PRIVATE PARTNERSHIPS BRIEFS
Created- May 2015
Modified- June 2015

http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/06/03/090224b082eed424/1_0/Rendered/PDF/Cameroon000Dibamba0power0plant.pdf

Dangote inaugurates $250m plant in Douala, Cameroon
By Daily Post Staff on August 27, 2015

"Dangote Cement Plc, on Thursday, achieved another feat with the inauguration of 250 million-dollar (N48.75 billion) cement grinding plant in Douala, Cameroon.
Dangote Group also laid the foundation stone for a 200metre jetty in Douala.

Alhaji Aliko Dangote, President/ Chief Executive, Dangote Group, said at the ceremony, that the plant, with a capacity of 1.5 million metric tonnes per annum (mmtpa), was a great feat in the operations of the company.

“The plant is our largest greenfield project in a neighbouring country with which we not only share a boundary but also a long history of brotherly relationship dating from our colonial days,” Dangote said."



"Dangote said that plans were on the way to commence the second phase of the plant which would double its capacity from the current 1.5mmtpa to 3.0 mmtpa."

General interest- the September edition of 'Business in Cameroon', VOG mentioned within the Energy Section:

http://www.businessincameroon.com/pdf/BC31.pdf

Under what ... bloody disasters ?

Petrofac : SPD Ltd secures well project management contract in Cameroon with Gaz du Cameroun
09/11/2015 | 10:40am US/Eastern
28 August 2015

SPD Ltd has confirmed it has entered into a Well Project Management Contract with Gaz du Cameroun PLC to provide well project management services.

Under the two year contract, SPD is to undertake well planning and operations management services for two firm wells onshore Cameroon with planning work starting immediately. Gaz du Cameroun PLC is a wholly owned subsidiary of Victoria Oil and Gas. VOG has created Gaz du Cameroun as an energy utility business that manages all gas supply stages from extraction to customer
connection. The Company has onshore gas reservoirs in Cameroon to provide the industrial region of Douala with cost effective, clean and reliable energy solutions.

Alex Macdonald, SPD managing director said: "This is a very exciting project for SPD and we are delighted to have been successful in securing this work. At a time when well operations in the UK are decreasing due to current market conditions, this significant contract win in West Africa continues to broaden our project portfolio and provides a stable platform to grow our capability geographically. It is excellent to have the opportunity to work with Gaz du Cameroun and we look forward to delivering a successful well management campaign on Gaz du Cameroun's behalf."

SPD is an independent well engineering company with a wealth of experience in planning and managing well operations worldwide, SPD operates in over 50 countries, with offices in Aberdeen, Dubai, Kuala Lumpur and New Zealand.




SPD Ltd Secures Well Project Management Contract

UK, Norway conclude Globeleq Africa acquisition

The UK’s State-owned development finance institution CDC and Norwegian investment fund Norfund’s joint buyout of power generation platform Globeleq Africa from emerging market investor Actis has been concluded, the parties announced on Monday.

http://www.engineeringnews.co.za/article/uk-norway-conclude-globeleq-africa-acquisition-2015-09-14

The Norwegian Norfund and CDC briannique finalize the acquisition of Globeleq Africa
September 14, 2015
By Marion Douet



Present in five African countries, including Côte d'Ivoire and Cameroon, Globeleq Africa is positioning itself as a major player in the independent power production.

In Africa, energy operator Globeleq is now 100% managed by development finance institutions. Last February, the Norwegian Norfund and the British CDC had announced their intention to acquire the platform dedicated to energy infrastructure in the continent. The takeover is now effective.

The entity Globeleq Africa brings together African assets of Globeleq. Created in 2002 by the development finance institution CDC, Globeleq had been transferred in 2009 to an investment fund managed by Actis (the Actis Infrastructure Fund 2), CDC is a major investor.

Joint venture

As part of this transaction, CDC has recovered its shares and transferred them into a new joint venture created in partnership with Norfund. For its part, the Norwegian has disbursed US $ 227 million to buy out the remaining 30% to Actis.

Globeleq Africa is an important electricity operator with eight active on the continent in Ivory Coast (with Azito power plant, one of the largest in the country), Cameroon (Dibamba and Kribi), Kenya, Africa South and Tanzania, for a total capacity of 1 095MW.

"We are proud that we completed during the past decade with the creation of a structure absolutely necessary for energy in Africa. We are confident about the ability of CDC and Norfund, in collaboration with the management of Globeleq Africa to successfully continue this work, "said in a statement Torbjorn Caesar, senior partner at Actis.

Electricity production

With Globeleq, the two European development institutions are aimed to "stimulate the production of electricity in Africa by adding at least 5,000 megawatts (MW) of generation capacity over the next 10 years," they had said in February, recalling that only 32% of the sub-Saharan African population has access to electricity.

http://www.jeuneafrique.com/264234/economie/norvegien-norfund-britannique-cdc-finalisent-rachat-de-globeleq-africa/

The person on the right of the picture above looks like Mikael Karlsson, Globeleq's
Chief Executive Officer :
http://www.globeleq.cm/english.html

Post 101 gives some information regarding Dibamba Power Station with a view to converting from heavy fuel oil to natural gas.

From the article in Post 151:

"In June, Globeleq completed – on time and within budget – the expansion of the combined-cycle gas turbine of its majority-owned Azito gas-to-power plant near Abidjan, in Côte d’Ivoire, to 430 MW of installed capacity and 139 MW of generating capacity using locally supplied natural gas."

http://www.engineeringnews.co.za/article/uk-norway-conclude-globeleq-africa-acquisition-2015-09-14

18 September 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")

Petroleum Economist Recognises Victoria Oil and Gas as Energy Company of the Year (Small Cap)

Victoria Oil and Gas (AIM: VOG), a gas utility company with operations in the industrial port city of Douala in Cameroon, is pleased to announce its success at the 2015 Petroleum Economist Awards, held on 17th September 2015 in London.

VOG won the "Energy Company of the Year (Small Cap)" award.

VOG has been one of the few companies to successfully monetise gas in sub-Sahara Africa by developing the Logbaba gas field in Douala, Cameroon. It has done so with the full support of the Government of Cameroon and its partner RSM of Denver. Through its subsidiary Gaz du Cameroon it is delivering gas to thermal and power customers in the private sector and to grid power suppliers.

The Petroleum Economist Awards is an annual event designed to celebrate the people, companies and projects which epitomise the best of the global energy industry. The scheme's judges included: Abdalla El Badri, Secretary General of Opec; Torstein Indrebø, Honorary Secretary General of the IGU; and Malcom Graham-Wood, founding partner of HydroCarbon Capital and acclaimed industry commentator. The winners were announced at a black-tie ceremony held on 17 September 2015 at Banking Hall, City of London.

VOG Chairman Kevin Foo said: "We are honoured to have been recognized with this award, as a testament to the hard work and dedication of our teams in Doula and London. VOG has made great strides in the last 12 months and we are now a growing utility company in Cameroon."

http://www.moneyam.com/action/news/showArticle?id=5115579

PE Awards winners
18 September 2015

On 17 September 2015, the winners of this year's Petroleum Economist Awards were presented with their trophies at a black-tie ceremony held at the Banking Hall in the City of London, attended by their colleagues and peers from across the energy industry.

The Petroleum Economist Awards is an annual scheme, designed celebrate the people, companies and projects which epitomise the best of the energy industry.

The scale of achievement of this year's winners was certainly impressive - together they showed not just the expertise, dedication and far-sightedness necessary to compete effectively in today's market, but also the clarity of purpose and flexibility essential to negotiating the pressures and challenges inherent in such challenging times.

The Petroleum Economist team would like to congratulate the winners of this year's awards:


Link below for full list of winners

http://www.petroleum-economist.com/Article/3487359/PE-Awards-winners.html

and from the Awards brochure of the event:

Energy Company of the Year - small cap

This award recognises an energy company which has shown significant improvement across the business during the judging period, as well as having sound corporate and operating standards and clear evidence of innovation in its business operations.

Judges sought evidence of strong company performance, including financial results; examples of business goals identified in prior years, which were met in the judging period; effective response to any unforeseen challenges; investment in R&D; and commitment to environmental protection and employee welfare.

The winner
Victoria Oil & Gas

While some producers in Africa have been struggling of late, Victoria Oil & Gas have quietly been developing one of the continent’s success stories. The company started producing gas from its Logbaba project right in the heart of Douala, Cameroon’s leading industrial port city, in 2012 and has found a ready market among the city’s population of 2.5 million.

Customers of all types have been eager to convert their operations to adopt gas as a cheaper, cleaner alternative to the diesel and heavy oil supplies that many rely on.
Victoria has adopted a holistic model, not only producing the gas, but also supplying it through its subsidiary Gaz de Cameroun to a customer base that largely lies within a 10km radius of its wells. As a result of its operations, new gasfired power stations are being built and industrial customers are emerging, including a new cement plant.

The company currently supplies gas to 23 customers for thermal use, such as boilers, process plants and furnaces, as well as producing condensate as a by-product, which is used locally and transported to other parts of the country by tanker. Gas is also supplied to gensets – 0.5-3 megawatt generators – located at factories and plants, providing an efficient way to scale up the business in a way that is tailored to its customers’ needs.

After some ups and downs early in the project, the AIM-quoted company has delivered on a business model designed to meet African problems with African solutions, maintaining the confidence of the government and other stakeholders.
The focus was on getting production online and revenue generated in the shortest time by working closely with local businesses, and, crucially, the company has also been able to set its gas sales price independently from world market values.

Now the hope is that the considerable potential for expansion within Cameroon can be realised, and that Victoria Oil & Gas’ operations there can provide a blueprint for developing similar models in other countries.

http://www.petroleum-economist.com/pdf/AWARDS/AWARDS2015.pdf

Taken from III and the BLVN thread (only part of post copied here), you will require a subscription to actually read the article on upstreamonline.com :

Fri 11:14-Good article - From Upstreamonline---- Winnet

"Chief executive Kevin Hart said: “Advanced discussions with Actis and Eneo regarding a gas-to-power scheme to supply the nearby Cameroon national grid demonstrates the strengthened commercial environment for the timely monetisation of success at Bomono.” Bomono is located close to Victoria Oil & Gas’ Logbaba field, which is supplying gas to industrial customers in nearby Douala.

Kevin Foo, executive chairman of Victoria, told a FirstEnergy Capital event in London last month that his company is in discussions with companies such as Bowleven and other nearby players about using its gas infrastructure to meet local demand.

“They are talking to us. People like Bowleven, Perenco, Glencore and Afex are all practical, and if there’s an opportunity to work together with us to use our pipeline, and it makes sense, they will do it. We will see how things develop.”

Victoria is supplying about 12 million cubic feet per day of gas to Douala-based customers, with a further 150 MMcfd needed to meet current demand.

Foo said Logbaba could be producing up to 100 MMcfd by 2020 “but there are going to have to be other people coming to the market place to meet demand.”"

http://www.iii.co.uk/investment/detail?code=cotn:BLVN.L&display=discussion

http://www.upstreamonline.com/hardcopy/news/article1412716.ece

Further exposure over last few days regarding VOG's recent award:

VOG Named Small Cap “Energy Company of the Year”

Tuesday, October 6, 2015

Victoria Oil and Gas (VOG) was named “Energy Company of the Year (Small Cap)” at the 2015 Petroleum Economist Awards. The company has seen great success in monetizing its Logbaba gas field in Cameroon. It has done so with the full support of the government of Cameroon and its partner RSM of Denver.

Through its subsidiary Gaz du Cameroun S.A it is delivering gas to thermal and power customers in the private sector and to grid power suppliers.

VOG Chairman Kevin Foo said: “We are honoured to have been recognized with this award, as a testament to the hard work and dedication of our teams in Douala and London. VOG has made great strides in the last 12 months and we are now a growing utility company in Cameroon.”

Victoria Oil & Gas PLC (AIM: VOG)
28 October 2015

Appointment of Director

The Board of Directors of VOG is pleased to announce the appointment of Ahmet Dik as a Director of the Company, and Chief Executive Officer of Gaz du Cameroun S.A. ("GDC") with effect from 27 October 2015.

Ahmet, who is a lawyer by profession, has been involved with VOG for the past two years and was instrumental in concluding the terms with ENEO Cameroon S.A., an agreement that has delivered significant production expansion to GDC and secured the first commercial take-or-pay contracts for the Company. Ahmet has also played a vital role in leading commercial teams within GDC and VOG as part of the Company's next stage of expansion.

Previously, Ahmet has worked on the structuring and delivery of a wide range of oil and gas, minerals, resources and infrastructure projects and was part of the senior management team at Dominion Petroleum Ltd, an AIM-listed company, in 2007, working on the acquisition of its East African assets. Dominion was subsequently sold to Ophir Energy Plc. Primarily his work has been with major corporates, governments and sovereign wealth funds focussed on Africa and the Middle East. As an originator of large scale projects, Ahmet has been involved in setting up corporate structures, raising funds at all levels and listing of companies on a number of stock exchanges.


Commenting today Ahmet Dik said: "Having worked with GDC it is clear that our priority is to drive forward its production to maximise our opportunities in Cameroon. GDC is a proven commercial success within Cameroon. There are a number of different gas supply markets we can now access but to address these, we will need increased production. My task for the next eighteen months is to ensure that new gas supply is efficiently delivered and that GDC develops a gas supply profile that is balanced between customer types and also contributing to shareholder value over the longer term."

Kevin Foo, Chairman, said: "I am delighted that Ahmet has joined us following his invaluable work over the last two years as we have delivered extensive commercial success from our gas operations in Cameroon. Ahmet's all round technical, legal and people skills make him an excellent person to lead GDC and in due course VOG, into the next stage of development."

The information included below is required under Schedule Two Part (g) of the AIM Rules for Companies:

Ahmet Dik (aged 42)


Current Directorships

Past Directorships (past 5 years)


Atacama Metals Holdings Ltd
Trojans Café Pty Ltd
Atacama Metals Group Ltd
Miltons Lawyers Pty Ltd
PT10 Holdings Ltd
Dostan Investments Ltd
Blackwood General Trading LLC

There is no further information to be disclosed pursuant to Schedule Two Part (g) of the AIM Rules for Companies.

http://www.moneyam.com/action/news/showArticle?id=5140582

28 October 2015
Victoria Oil & Gas Plc
("VOG" or "the Company")

Preliminary Results for year ended 31 May 2015


Chairman's Statement & Operations Review

Dear Shareholder,

I am pleased to report progress for this financial year and to share some of our objectives for the immediate future. In the year ended 31 May 2015, Victoria Oil & Gas Plc ("VOG" or "the Company") realised outstanding production growth as new markets in Cameroon, particularly supplying gas to generate grid power, were opened up to Gaz du Cameroun S.A. ("GDC").

A Notable Year

At the end of the financial year, VOG had accomplished the following operational advances:

· A 356% increase in financial year-end monthly average gas production from 2.72mmscf/d in May 2014 to 12.39mmscf/d in May 2015;

· Reached an agreement with ENEO Cameroon S.A. ("ENEO"), Cameroon's national electricity generating company, to provide gas to installations at the Bassa and Logbaba power stations in Douala via take-or-pay contracts that secured substantial revenue for at least the next two years;
· Delivered first gas to provide 50MW of capacity to the Cameroon grid through ENEO;
· ompleted the main Douala pipeline network, successfully crossing the Wouri River to the Bonaberi shore, opening up new markets in this growing area; and
· Purchased the Logbaba gas processing plant and commenced planning for expansion to double capacity to approximately 40mmscf/d.

As a gas production utility supplying energy to the industrial port city of Douala, our core business has been somewhat insulated from the effects of the major shift in oil pricing, which has seen one of the worst downturns in twenty years. During the year our business withstood the competitive price pressure of heavy fuel oils ("HFO"). GDC's gas products are more attractive than HFO due to zero storage costs, transparency, cleanliness (emissions and equipment deterioration) and reliability.

The oil downturn has affected us in equity markets, where VOG's share price has suffered somewhat, in line with its peer group in the exploration and production sector. Our response is to continue building our business, increasing cash flow and improving margins. We continue to work hard to ensure that the market recognises the distinction between our cash generating assets and riskier exploration and production companies.

Our operations are funded by Group cash, modest bank financing and from our concession partner, RSM Production Corporation ("RSM"). We have not sought shareholder equity finance since February 2013.

One of our core focuses during the year was to bring online new product applications for GDC gas. The most obvious usage was that of power, with existing thermal customers in the private sector requesting GDC to apply our gas for an electricity generation solution.

The ENEO agreement, which was completed in late December 2014, is an excellent example of how three diverse companies, ENEO, GDC and Altaaqa Alternative Solutions Projects DWC- LLC ("Altaaqa"), the modular generator supplier, can work together to achieve impressive results. All companies took considerable risks engaging in the first major gas to power project in Cameroon and successfully supplied power to the grid within 90 days of signing agreements. Working in Africa sometimes presents challenges but this project demonstrates that working with the right partners, with the right business model can realise real value for shareholders. The model that has evolved for GDC is to focus on gas supply only, and to keep it simple.

As a result of the Government of Cameroon's full support of our activities, we have been able to work in a commercial environment without the restrictive price regulating practices which hamper power development and stifle economies in some other African countries. Douala is now a port city that is becoming the primary investment destination for many international companies seeking a regional hub.

Corporate

The financial accounts for the twelve months ending 31 May 2015 state a loss on ordinary activities after taxation of $50.8 million, and revenue of $27.9 million. The loss is primarily due to a $49.8 million impairment charge relating to the Group's Russian asset West Medvezhye. For the same financial year, our operations in the Group's Cameroon segment reported a profit after tax of $5.4 million.

The impairment of the Russian asset was included in of the Interim Results for the six months ended 30 November 2014. The Directors continue to pursue ways to derive value from the asset through farm-out, joint venture or sale, however this has been challenging due to the state of relations between Russia and the West, combined with the low oil price, and so the asset continues to be carried fully impaired.

Ahead of the projected production expansion at GDC in the first half of 2015 the Company decided to undertake a capital reorganisation and share consolidation. Following shareholder approval at the 2014 AGM, every 40 existing ordinary shares of 0.5 pence became one consolidated ordinary share of 20 pence ("Consolidation"). Immediately following the Consolidation, each of the consolidated ordinary shares was sub-divided into one new ordinary share of 0.5 pence and one new deferred share of 19.5 pence. The reorganisation was carried out following feedback from major investment groups who viewed the pre-existing market price of VOG shares at around a penny as being too low. VOG now has a share price level appropriate to a revenue producing utility company while maintaining high liquidity.

During the year Numis Securities Ltd ("Numis") was appointed as sole broker to the Company. Following announcement of the ENEO terms in December 2014, Numis published new research and guidance on the Company incorporating the first minimum take-or-pay commitments into their forecasts. VOG is committed to delivering operational success within the framework of a detailed financial analysis of the Company by an established UK broker.

Continuing VOG's ongoing commitment to strengthening the Board, two Independent Non-Executive Directors were appointed. James McBurney joined the Board in June 2014. John Bryant was appointed to the Board in December 2014.

I am also delighted that Ahmet Dik has agreed to join us as a Director of VOG and Chief Executive Officer ("CEO") of GDC. Ahmet has worked by my side for the last two years and is instrumental in delivering major technical and commercial success from our gas operations in Cameroon. Ahmet's all round project development, legal and leadership skills make him an excellent person to have on both the VOG and GDC Boards as we move into the next stage of development. In time it is our intention that Ahmet will become CEO of VOG, which will enable me to relinquish the role of interim CEO and focus on strategy and growth plans for the Company.

http://www.moneyam.com/action/news/showArticle?id=5140560

Operations Review

The beginning of the year saw GDC demonstrate its ability to supply gas for electric power use, with connection of the first gas-fired electricity generation sets ("Gensets") to customer sites within Douala. The four sites connected were all existing thermal customers who needed a consistent supply of electric power to overcome regular grid blackouts. Through an agreement with a third-party, GDC leased 1.5MW Gensets and installed them at Camlait (dairy), Icrafon (plastic mouldings), SCTB (flour mill) and the Guinness Brewery. Despite import related delays in delivering this new product line during the previous year, once released by port authorities the Gensets were installed and running at the customer sites within a month.

Our retail power customers immediately received the benefits of a consistent supply of power with a stable load, no outages or downtime costs and no material wastage. The installation of the Gensets also provided GDC with the first new derivative product from Logbaba gas in addition to thermal combustion. The retail power model demonstrated "proof of concept" and was a key factor in our negotiations with ENEO. Now that the concept has been proven, the four retail power customers are expected to take over Genset rental contracts directly from the supplier and GDC will be gas supplier only to these customers.

Work on the spur pipeline to the Dangote Cement Plc ("Dangote") cement works was also completed early in 2015. The $115 million Dangote plant, a 1.0 MMTPA, clinker grinding and bagging facility located at Douala port, was commissioned in early June 2015 and has been a consistent and slowly increasing consumer of GDC gas since this time. GDC also successfully completed connections on the Douala main shore to customers such as Socapursel, a food manufacturing business and SOTEX, a textile manufacturer.

With the main Douala network firmly established, a key task for GDC was to establish a presence on the Western Bonaberi shore across the Wouri estuary. This area hosts a number of potential customers but also has the space for industrial developments requiring port access. I am particularly proud that GDC, under its new outsourced contracting system, laid 678 metres of 400mm gas pipe 15 metres under the Wouri River in October 2014. Crossing the river onto the Bonaberi shore was completed despite a technically difficult sub-surface pipe 'shot' exercise. In addition, some 1,129 metres of branch lines were established in the Bonaberi-Magzi Estate area with the first customers connected within five weeks of crossing following successful safety checks and flow testing. New Bonaberi thermal customers were Sopriacam, a cooking oil and soap refinery, New Foods, a biscuit manufacturer and Sasel, a salt manufacturer. These three customers are now consuming gas on the Bonaberi side and we are confident of adding at least eight more in 2016.

Other than the newly commissioned Dangote plant all new thermal customers were previously using HFO for boilers driving mechanical plant and processes. The GDC marketing and engineering teams worked with the senior management of these businesses to demonstrate the cost savings expected to occur following conversion to gas from HFO and then implemented individual engineering solutions that ensured an efficient conversion for these customers.

On 29 December 2014, the Company announced that GDC had signed a legally binding term sheet with ENEO, Cameroon's integrated electricity company, to supply gas to two power stations located in the city of Douala. The Bassa Power Station was located 0.3km from the GDC existing northern pipeline and the Logbaba Power Station was located 1.3km along the proposed eastern leg of the main line. ENEO needed to produce a total of 50MW of power from the two stations.

The agreement with ENEO was a significant gas supply contract for VOG in terms of scale and revenue generation, with guaranteed minimum take-or-pay gas consumption at a fixed $9/mmbtu over the two year contract term. The contract can be extended by mutual agreement. The take-or-pay element gave GDC the necessary incentives to allocate significant levels of gas to a single customer. The ENEO deal significantly increases production and secures GDC revenues under the fixed take-or-pay conditions. The minimum take-or- pay levels are 9mmscf/d in the January-June dry season and 3mmscf/d in the July-December wet season. GDC anticipates actual demand from ENEO will be higher than the minimum take-or-pay levels during both seasons with ENEO advising GDC of their need to supply 50-80MW of additional power to the Douala grid for each of the next five years. Altaaqa was engaged to provide power generation equipment to the project and took responsibility for importing and installing the Gensets at the Douala power stations.

On 23 March 2015, the Company announced the first supply of 4.5mmscf/d of gas to the sixteen Altaaqa Gensets installed at Bassa Power Station. Following the pipeline connection to Bassa by GDC and the successful installation of the Gensets by Altaaqa, 20MW of gas generated power was being fed into the grid for the first time. Shortly afterwards on 23 April 2015, it was announced that the Logbaba power station project was online and delivering 30MW to the grid. This meant that the 50MW target under the ENEO agreement and GDC's responsibilities to deliver gas to both stations had been met. This principal delivery factor triggered the take-or-pay conditions in the contract with ENEO. The total project was delivered within four months of contract signing.

On 27 May 2015, the Company announced that it had made payment in full for the purchase of the Logbaba gas processing plant ("the Plant") from Expro. The Plant has been purchased from Expro for $2.58 million, using cash generated from GDC operations and contributions from RSM. Ownership of this plant has significantly reduced monthly operating costs at Logbaba.

http://www.moneyam.com/action/news/showArticle?id=5140560