StockMarketWire.com
Victoria Oil & Gas chairman and interim CEO Kevin Foo said he is concerned about the weak share price which he believes grossly undervalues the business.
In less than four years, Victoria has succeeded in drilling two complex wells, installing gas processing facilities for 20mmscf/d, laying 22km of pipeline, selling gas and collecting revenue.
He noted the following points:
- Our key objective is to build our business and cash flow from our flagship Logbaba gas deposit in Cameroon to fund further expansion and acquisitions in Africa;
- We are a producing natural gas and energy company that is generating revenue which we expect, in November 2013, to be profitable at an operating level. This places us as a mid-stream business - we are no longer an exploration company;
- The Company's Logbaba natural gas and condensate field is estimated to hold sufficient proven and probable reserves to supply an average 20 mmscf/d for the next 30 years to industrial customers;
- We have been supplying gas on a continuous basis since June 2012 without interruption and we currently have 19 customers on line;
- We are in the fortunate position of being neither demand nor supply constrained and as we have said before, VOG was the first ever commercial onshore gas producer in Cameroon and we currently have no competition in country;
- We have the full support of the Government of Cameroon at all levels and are working actively with our partners and our customers to accelerate the demand for additional energy and power into Cameroon industry. Ninety five percent of our total workforce of 128 people is Cameroonian.
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