this will go soon. 2p was 46p now with good news

market cap £66m they certainly need to sell a load of gas.

Foo think we are fools.



Victoria Oil & Gas' Cameroon gas business remains an astounding opportunity, says Kevin Foo " - Pro


Victoria Oil and Gas Plc

Today at 3:57 PM


Proactive Investors published a new article about VOG today View this email in your browser



Proactive Investors new article:
Victoria Oil & Gas’ Cameroon gas business remains an astounding opportunity, says Kevin Foo

Victoria Oil & Gas’s (LON:VOG) last trading update was notable for chairman Kevin Foo’s mea culpa as he took full responsibility for missing “a number of deadlines and targets”.

But as the group approaches some important, value-crystallising milestones, he is unashamedly bullish about the long-term potential of the company’s gas operation in Cameroon.

“We will be fairly careful of making bold, arm-waving projections in the future,” said the chairman after the group failed to meet some fairly punchy production guidance.

“Nevertheless the fundamentals remain the same and this is an astounding opportunity.”

In fact, what VOG has done in the past-three-and-a-half years would, in normal circumstances, be applauded.

It has drilled two wells on the Logbaba gas condensate field within Cameroon’s largest city, Douala; built its own pipeline, and is in the process of weaning local businesses off expensive and dirty diesel or heavy oil and onto cheaper, cleaner gas.

This has involved laying its own 22-kilometre pipeline, which will expand by a further five kilometres by the year-end, and importing the generators required to power local plants and factories.

It has done this in the face of some of the most difficult funding conditions for growth companies.

Where the group has fallen down is over-promising and under-delivering when it has come to hooking businesses up to its new, expanding gas network.

Not that the locals are eschewing the benefits VOG’s gas has to offer – far from it. It is simply taken a little longer to turn from contacts on paper to gas flowing than had been anticipated.

The latest stock market missive from Victoria is a case in point. The headline suggests, rightly, that the group will miss a short-term production landmark of 12mln standard cubic feet of gas a day.

But if you delve more deeply into the body of the text you realise this is the result of delays at the customer’s end, rather than a lack of demand for the gas.

In fact, there are three contracts that had they occurred when first slated would have utterly transformed VOG’s performance, and when they do materialise they will turn the AIM-listed group into a cash generative, profitable business, making a mockery of the current share price.

“The projection of 12mln standard cubic feet of gas a day was based on all manner of discussions with customer and projections,” said Foo.

“Yet suddenly we have 8-8.5mln scuffs (standard cubic feet) that are not there, but will be in the first quarter of next year. All [the delays] are due to delays on their own projects.”

The last update revealed production of 2.4mln standard cubic feet a day, although this is set to increase to 2.9mln in the next few weeks when its latest customer, a local brewer, is hooked up.

And this is a crucial juncture for the local company RDL as it’s the point it hits break-even.

Beyond 4mln standard cubic feet a day the group can claim to be cash generative, hopefully putting the challenging times behind it.

The current backlog of projects, including a large foundry, cement plant, power station and river crossing, will add a further 9.6mln standard cubic feet a day of production that will transform the company’s revenue and earnings line.

“With a significant infrastructure installed, it [VOG] is set to benefit from positive operational gearing as the ramp up is progressed,” said Andrew McGeary, analyst at City broker Northland Capital.

As well as production landmarks, there are a couple of other potential share price catalysts in the pipeline, analysts say.

Investors are looking out for an update on the group’s highly prospective West Med oil and gas assets in Russia after running what it called a “limited auction” following a strategic review by Renaissance Capital.

And there is the promise of a ruling on the International Chambers of Commerce arbitration case involving RDL and former partner RSM, which is due by the end of the month.

A favourable decision would see RDL maintain its 95% interest in Logbaba. However, even an adverse judgement would be “neutral” for RDL and its parent Victoria, says Northland’s McGeary.

That’s because RSM will have to stump up US$20mln to cover missed cash calls and allow RDL to recover a further US$65mln of drill costs.

“On those projections it will be the end of 2016 before they [RSM] sees much money from us at all,” said chairman Foo.

The major pre-occupation among investors (who can sometimes be quite vociferous on the bulletin boards), is not the outcome of the arbitration but the direction of the share price.

However, as a major shareholder Foo has suffered as the stock has declined and diluted as VOG has raised much needed funds to get the Logbaba project over the finish line.

“Our duty is to get the share price up,” said Foo. “My average price is 6p – so it would be nice in the short-term to get it back there.

“The fundamentals are the same as they have ever been. We are the only game in town in terms of a gas play; we are hooking up customers and within a month we will be cash break-even.

“A couple of months after that we will be in profit. What we have achieved so far in Cameroon has been outstanding.”

To read the article on Proactive Investors click here


For further information visit www.victoriaoilandgas.com


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http://www.ogj.com/articles/print/volume-111/issue-11a/general-interest/victoria-expands-cameroon-industrial.html

Hiya mate :-)

What times choir practise ?

Ffs buy something tidy :-)

big buys today this will double before xmax

ICC International Court of Arbitration Award
RSM Production Corporation (U.S.A.) vs VOG and Rodeo Development Ltd ('RDL')
The Company announces that the Secretariat of the International Chamber of Commerce ("ICC") has informed it that, pursuant to Article 24(2) of the Rules of Arbitration, the ICC International Court of Arbitration has extended the time limit for the above case until 31 December 2013.

Oi Lambert ... which fecking Christmas ????

i cant belive my cost was 305 and bought some more to reduce to 180 and still its going down despite having income coming in , if you know why this happening dec 31st is due to annuale report and same day icc court hearimg?????????? hope it go up rather than going down

12 December 2013



Victoria Oil & Gas Plc

('VOG' or 'the Company')



ICC International Court of Arbitration Award



RSM Production Corporation (U.S.A.) ("RSM") vs VOG and Rodeo Development Ltd ("RDL")



The Company announces that the Secretariat of the International Chamber of Commerce ("ICC") has informed VOG, late last night, that it has reached a decision in this matter (the "Award").



However, until that review is complete, the Company will not be in a position to issue an RNS (the "Award RNS") clarifying the position. Accordingly, the Company has agreed that the Company's stock will be suspended from trading on AIM until the Award RNS is released.

The Company announces that the Award in the ICC Arbitration proceedings brought by RSM has now been handed down to the parties. Whilst numerous RSM claims were either withdrawn or rejected, the Tribunal has determined that the cure period for RSM's "unequivocal default" should have been 30 days and not the 15 days contended for by the Company. Consequently the automatic contractual forfeiture of RSM's interest in the Concession has not been upheld.

Commenting on the Arbitration Kevin Foo, Chairman, of Victoria Oil and Gas; "We had a dispute with RSM and it is now resolved. The Company now has a contributing partner responsible for 40% share of all costs going forward and who is obliged to pay an outstanding cash call of approximately $4 million. Additional cash calls of approximately $20m are also due to be issued imminently. Under Agreements with RSM, RDL expects to recoup the majority of its $65m capital expenditure on wells 105 and 106 before any profit distribution is due to RSM. Furthermore, VOG's subsidiary RDL is entitled to apply for an additional 44 sq. km area exploration area that borders our existing 20sq km Exploitation License on three sides."

http://www.moneyam.com/action/news/showArticle?id=4724313

VICTORIA OIL & GAS PLC
The trading on AIM for the under-mentioned securities was temporarily suspended. The suspension is lifted from 13/12/2013 8:45am, an announcement having been made.

http://www.youtube.com/watch?v=q_4Hq-46hPw&feature=youtube_gdata_player