Clunes100
30 Jun'16 - 20:16 - 1106 of 1117

Still mulling over the AGM which was the best yet, quick points:

New BoD looks impressive and attempted to answer all questions during and after meeting;
Dik certainly seems to be very competent;
New finance director competent but thrown in the deep end, as he will have to convince shareholders about transparency of accounts;
Focus on next two wells, next ENEO contract and ensuring infrastructure capacity to deliver higher volumes of gas;
Condensate operation including transport, profitable;
Closely followed by developing and drilling new licence;
Preparations for spudding well advanced and rig at port;
Drill costs will be covered by cash, revenues and RSM, $26m bank financing provides leeway and will ensure that the cupboard is not bear with respect to all programmed developments, which translates to further dilution being unlikely for lack of financial resources;
RSM payment will be announced shortly;
RSM will continue to pay 40% or capital and operating costs on producing wells, so 40% will effectively be net of these costs, so ignore the headline 40% figure and the situation will likely be better than most believe on this board as long as ENEO increases consumption, the high margins will kick in, especially when the drilling and pipeline costs start to fall.

Operationally VOG has made strong progress, the key to the future will be successful wells, followed by further energy contracts, here the excellent margins will ensure cash fall to the bottom line.

Operational update in a couple of weeks.

Royalty issue being looked at by independent BoD committee.

Overall, good meeting and I have to say that whilst Foo is personally not yet forgiven, he is a man of vision who has held it together by the skin of his teeth and deserves some credit and credit for managing to get a credible team around him to take VOG forward in an unfriendly business environment in the UK, Cameroon and globally.

Holding but I believe that the turning point has been reached, it won't be a smooth climb for the share price but the momentum will pick up as the many bits of good news will start rolling in.

If you are analysing VOG here is a tip that will give an indication of the potential, if VOG has just turned the corner and made a small profit, consider the actual cost of extraction and high margins given the selling prices due to local market conditions, then extrapolate the margins over another ENEO contract.

DYOR and crunch your own numbers as it is a punt based on successful wells on known reserves and new ENEO contracts building on existing contracts but when the market wakes up to the potential the sp will start its recovery, that might be in a day, a month, six months or a couple of years - the timeline is the big question?

Some announcements to watch for (not necessarily in order):

RSM announcement and operational update - two weeks
Rig on site
Spudding well
Update
Hit Gas
haf year results
Spudding well
Hit Gas
Update
Reserves upgrade
Spudding new licence?
AGM

Is that of any help? Anyone else got a view on the AGM? anyone want to challenge what I have said?

fatnacker
30 Jun'16 - 20:28 - 1107 of 1117

Much appreciated Clunes.

BroncoWarrior
30 Jun'16 - 20:54 - 1108 of 1117
Thanks Clunesy.

grimreaper5
30 Jun'16 - 21:07 - 1109 of 1117

I was very impressed by Ahmet Dik during the meeting and in our chat afterwards.

With VOG's more or less fixed cost base any more big power contracts (which there will be) will drop straight to the bottom line.

Also remember it is not just ENEO that GDC are talking to. Other power contracts are available with other power station owners like Globeleq (owners of Dibamba).

I am expecting news on West Med sale quite soon as well.

grimreaper5
30 Jun'16 - 21:20 - 1110 of 1117

hTTp://www.victoriaoilandgas.com/sites/default/files/presentations/160629%20VOG%20AGM%20Presentation.pdf

Clunes100
30 Jun'16 - 22:59 - 1111 of 1117

Still expecting director purchases within the next month, if not then I suspect that the timescales slip to the right and they will sit fat and happy on their options. If they are and they have not already (no announcement yet), I would expect news after the update. Operationally VOG is delivering on programme/infrastructure milestones, even if gas sales are not what was originally as expected. They did mention that some customers were increase off take whilst others like Guinness are using grid electricity but still have the generators in place.

Grim, is your comment on West Med based on a discussion or just feeling? Dik publicly said that he was reviewing all costs and involved in all commercial contract negotiations to keep costs down including West Med and Kermol.

grimreaper5
1 Jul'16 - 00:09 - 1113 of 1117

My comments about a west med sale came after a chat I had with Foo after the AGM.

grimreaper5
1 Jul'16 - 00:11 - 1114 of 1117

As far as I am aware there are no costs associated with Kemerkol currently. Russia costs about $1.1 million annually at the moment to keep ticking over.

Clunes100
1 Jul'16 - 07:21 - 1115 of 1117
Thanks grim, appreciated.