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
    

20 December 2017
Victoria Oil & Gas Plc

La-108 Well Test Result Ahead of Expectations

Victoria Oil & Gas Plc is pleased to provide an update on the Group's well operations, which are managed by Gaz du Cameroun S.A. ("GDC"), a wholly owned subsidiary of VOG.

· Completion equipment and production "Christmas tree" installed and the drilling rig released from the La-108

· Initial gas flow rates up to 15mmscf/d commenced from just the Lower Logbaba sands of La-108 - ahead of expectations - La-107 flow tested at a lower rate of 4 mmscf/d from an equivalent horizon

· Operations on La-108 suspended ahead of testing the Upper Logbaba sands to allow production from La-107 during peak demand season


As previously announced, well La-108 was successfully drilled to its planned Target Depth (TD) of the 6" hole section at 2,865m Measured Depth (MD) (2,463m True Vertical Depth) on 7 November. The completion equipment has now been run, the drilling rig has been skidded off La-108 and released and the production Christmas tree has been installed.

Flow testing of the Lower Logbaba sands has now commenced, with flowrates from these sands up to 15 mmscf/d being achieved on a 40/64ths inch choke with a flowing wellhead pressure of 2006 psi. This is ahead of expectations and substantially better than the 4mmscf/d which was obtained from the Lower Logbaba sands in La-107. This is very encouraging and further evaluation will be carried out on these sands in 2018 before the well is put into full production. This work will also recover a spent perforating gun which currently remains stuck in the well.


When full production potential of the Lower Logbaba sands in La-108 has been evaluated, a decision will be taken on the timing of adding more perforations into the highly prospective Upper Logbaba sands.


As previously announced, analysis of the La-108 logs indicated 84.5m of net gas sand in the Logbaba Formation and current production results have been obtained from perforating 18.7m of sands in the Lower Logbaba only.


Commenting today Ahmet Dik, CEO, said: "It is very pleasing to have reached the end of drilling and completion operations on La-108 and the resultant release of the drilling rig. This milestone marks the end of the major capital spend on these wells as we move into the production phase. We have also achieved higher than expected flowrates from the Lower Logbaba sands in La-108. The Production Management Plan for the well is now being prepared by our team and we expect this to be completed by early 2018. Naturally, it is important to VOG that we meet short term demand, whilst aiming to maximise reserves from the field. This will help us meet the growing demand in the Douala market, which management believes will be forthcoming over the longer term."

http://www.moneyam.com/action/news/showArticle?id=5788522

Interesting article on 'fishing' for lost equipment in boreholes:

https://www.slb.com/~/media/Files/resources/oilfield_review/ors12/win12/3_fish_art.pdf

21 December 2017
Victoria Oil & Gas Plc

Year End Customer Supply Update 2017

Victoria Oil & Gas Plc, a Cameroon based gas producer and distributor, is pleased to provide an update on the Group's gas supply operations near to the close of 2017 and to announce Q3 production results, which are in-line with expectations.

The last few months have also been extremely active for Gaz Du Cameroun S.A ("GDC") with five customers commencing consumption of gas:

· Maya & Co Oil (Palm Oil refinery, new customer)

· SAE (Food processing, new customer)

· PROMETAL 3 (Smelter, new plant for existing customer)

· UCB (Brewery, returning customer)

· Laminoir (Foundry, returning customer)



Maya Oil and SAE are new customer connections for GDC with both operations taking gas for thermal usage. These customers are both situated on the Magzi industrial estates located on the Western Bonaberi shore, where GDC laid an extensive pipeline network during 2016.

The PROMETAL 3 connection is the latest installation at the industrial smelting complex where GDC already supplies gas to the existing operations (PROMETAL 1 & 2). UCB and Laminoir are returning customers who have opted to restart consumption of GDC gas following the rise in the heavy fuel oil price.

The impact of the new customer connections and an early uplift in ENEO consumption this year is already being reflected in current production figures with an average of 10.04 mmscf/d gas sales achieved to date in December (1-19th December), peaking at 14.94mmscf/d.

ENEO continued to consume high levels of gas at the Logbaba and Bassa power stations during the Q4 period to date and GDC will continue to provide gas to ENEO under existing contract extensions whilst negotiations on a longer-term contract continue.

The Company has provided separate updates on completion of wells La-107 and La-108 and further flow tests on the Lower and Upper Sands of La-108 are planned for Q1 2018. Once these tests are completed reserve calculations for both wells will be carried out by internal and external reservoir engineers. However, internal preliminary reserve estimates have given the Company sufficient confidence to enter into long term contract negotiations with current and prospective grid power suppliers.

The full quarterly gross and net gas and condensate consumptions, for Logbaba and GDC, are as follows; amounts in bold are gas and condensate sales attributable to GDC*:

***See link at BOP***

Q3 2017 Gross Gas sales from Logbaba of 612.50 mmscf are in line with the Company's expectations for the period given the early wet season from June. GDC's attributable gas sales volumes, are lower than Q3 2016 primarily due to the change in attributable revenues following the SNH participation.



Ahmet Dik, CEO, said; "I am pleased to see the increased December gas sales levels coming through from our new thermal customers. Supply to ENEO continues at strong levels and we shall update the market early 2018 on further gas to power supply. We shall also provide updates on the Matanda and Bomono projects."

http://www.moneyam.com/action/news/showArticle?id=5790434

Cameroon: Norwegian Grenor and Chinese Power China integrated in the government committee dedicated to the highways of electricity
21st December 2017



(Invest in Cameroon) - The President of the Republic, Paul Biya, signed on Dec. 19, a decree establishing, organizing and operating the steering committee of the project of motorways of electricity.

The composition of this government committee includes the presence of the Norwegian Grenor and Chinese Power China International. The body's mission is to ensure the consistency of projects with public policies, validate studies related to them, formulate strategic orientations, examine funding plans, ensure compliance with commitments and obligations of the State, recruit external consultants, etc.

It must be said that the presence of Grenor and Power China in this steering committee of highways electricity is not a big surprise. For, the President of the Republic, Paul Biya, received in audience on August 11, 2017, in Yaounde, Finn Johnsen, and Song Dongsheng, respectively presidents of the Norwegian groups Green Energy Norway (Grenor) and Chinese Power China International.

The two guests of the Palace of Unity had come to present, that day, to the head of the Cameroonian state an offer of industrial development for the country. First, the construction of a thermal power plant for the production and distribution of electricity in Douala and its surroundings. It will have to produce 150 megawatts of energy. Then there is the extension of the hydroelectric dam at Memve'ele (211 MW). And finally, the construction of a thermal power plant with an estimated production capacity of 1,000 megawatts of electricity.

The chairman of the Norwegian group, Finn Johnsen, said during the meeting that this important program is a boon to young people looking for jobs. In total, 800,000 new direct and indirect jobs will, according to him, be generated by these investments.

http://www.investiraucameroun.com/grands-travaux/2112-10008-cameroun-le-norvegien-grenor-et-le-chinois-power-china-integres-dans-le-comite-gouvernemental-dedie-aux-autoroutes-de-l-electricite

General interest (translated via Google):

The IMF validates the first review of its program with Cameroon, and makes a new disbursement of 65 billion FCFA
Friday, 22 December 2017



(Invest in Cameroon) - The Board of Directors of the International Monetary Fund (IMF) validated, on December 20, 2017, the first review of its three-year economic program (2017-2019) with the Cameroonian government.

" Cameroon's performance under the Extended Credit Facility (ECF) has been broadly satisfactory. The authorities remain fully committed to fiscal consolidation, and the 2018 budget is in line with the objectives of the program. However, meeting the deficit targets can be challenging in the context of lower-than-expected revenues and spending pressures in 2018 and 2019, "said Mitsuhiro Furusawa (pictured), Deputy Managing Director of the IMF.

This validation, we learn in an official statement, gives right to a new disbursement of about 117.2 million dollars for Cameroon, more than 65 billion CFA francs. This additional disbursement brings to approximately $ 292.9 million (about CFAF 162 billion), the overall allocation made available to Cameroon by the IMF since the conclusion, in June 2017, of an Extended Credit Facility. , between Cameroon and this institution of Bretton Woods.

The program, with a total of $ 666 million (more than CFAF 370 billion), provides for disbursements over a period of three years, subject to the approval of the half-yearly reviews by the Fund's Board of Directors. .

As a reminder, this three-year program aims to support the country's efforts to restore external and fiscal sustainability, and lay the foundation for sustainable, inclusive growth driven by the private sector.

Brice R. Mbodiam

http://www.investiraucameroun.com/cooperation/2212-10012-le-fmi-valide-la-1ere-revue-de-son-programme-avec-le-cameroun-et-fait-un-nouveau-decaissement-de-65-milliards-fcfa

Translated via Google:

World Bank Provides $ 200 Million Budget Support to Cameroon
Friday, 22 December 2017



(Invest in Cameroon) - The Cameroonian Minister of Economy, Louis Paul Motaze, and Gina Bowen, representative of the director of operations of the World Bank, signed a credit agreement in Yaounde on 22 December. amount of 200 million dollars, or 112.83 billion FCFA.

The agreement, which is being signed, is dedicated to supporting development policies for fiscal consolidation and inclusive growth in Cameroon.

Louis Paul Motaze explained that the amount mobilized is only part of the first tranche ($ 200 million) of the global envelope of budget support expected from the World Bank totaling $ 400 million. (about 220 billion FCFA). " It will therefore remain to mobilize $ 200 million ($ 100 million in 2018 and $ 100 million in 2019) subject to the satisfactory implementation of the economic and financial program with the IMF whose success is backed by budget support. . "

To benefit from the global envelope of this financing from the World Bank, Cameroon must successfully carry out, among other things, the reduction of the tax expenditure related to direct taxation, the adoption of a new public procurement code, the deployment of the computer system for the integrated management of the State and payroll, second generation (Sigipes II) within the Cameroonian administration, the establishment of a reliable mechanism for the payment of electricity, etc. .

http://www.investiraucameroun.com/aide-au-developpement/2212-10018-la-banque-mondiale-accorde-un-appui-budgetaire-de-200-millions-de-dollars-au-cameroun

2 January 2018
Victoria Oil & Gas Plc

Bomono Farm Out Extension

On 6 March 2017 Victoria Oil & Gas Plc, ("the Company") a Cameroon energy utility, announced that the Company and Bowleven Oil & Gas Plc ("Bowleven"), the African focused oil and gas exploration company, signed a farm-out agreement ("the Agreement") relating to the Bomono production sharing contract.

On 17 September 2017 VOG elected to exercise its option to extend the termination date of the Agreement to 31 December 2017.

The Company is pleased to confirm that a further extension has been agreed and discussions on the Agreement are continuing. Bowleven and VOG are working with the Government of Cameroon to advance the Bomono project.

http://www.moneyam.com/action/news/showArticle?id=5798937

***Translated via Google***

Cameroon: British petro-gas Bowleven sends sine die the conclusion of the agreement with VOG on its license Bomono
Friday, 05 January 2018



(Invest in Cameroon) - After successive referrals to September and December 2017, the deadline for the conclusion of the agreement to allow British oil and gas operator Victoria Oil & Gas (VOG) to acquire a stake in 80% on the Bomono license, so far held by his compatriot Bowleven, has just been extended again.

According to the British media, citing an official statement issued by Bowleven to this effect, no new date for the finalization of this agreement was mentioned; leaving doubt on the actual conclusion of this agreement, the principle of which has been recorded since March 2017. This is especially true, only a few days after the announcement of the agreement between the two oil operators. British gas on the Bomono permit, the National Hydrocarbons Company (SNH), the armed arm of the State of Cameroon in exploitation and oil and gas exploration, had expressed reservations.

" The SNH informs the public that the State of Cameroon, the owner of the gas resources concerned, has neither been informed of this agreement in the usual forms provided for in the petroleum contracts, nor authorized such an agreement, as the texts require. . Consequently, the information published by Bowleven concerning Bomono's gas resources which, in the opinion of SNH, still requires research work to justify sustainable commercial exploitation, is erroneous and incurs only this one company " , the Cameroonian state-owned company said in an official statement.

In the wake of this exit from SNH, Bowleven's board of directors was almost dismantled, at the request of Crown Ocean Capital, the largest shareholder of the company. This further complicated the discussions not only to finalize the settlement agreement between Bowleven and VOG, but also to influence the position of the Cameroonian side on this transaction.

As a reminder, according to the aforementioned agreement, VOG will hold 80% of the assets on the Bomono license, through its subsidiary GDC Bomono, against 20% for Euroil (partner of Bowleven), which retains the status of operator. The aim of this lease-out, Bowleven emphasized, is to develop, in the short term, the potential of Bomono (which covers an area of ​​2328km²), by marketing more gas and by further developing downstream activities. on the perimeter.

Brice R. Mbodiam

http://www.investiraucameroun.com/hydrocarbures/0501-10037-cameroun-le-petro-gazier-britannique-bowleven-renvoie-sine-die-la-conclusion-de-l-accord-avec-vog-sur-sa-licence-bomono

Bad news released after the close interesting share price took a dive before the close ending down over 20%

5 January 2018 @ 16:31

Victoria Oil & Gas Plc

Gas Supply Contract with ENEO Not Extended

Victoria Oil & Gas Plc ("the Company") announced on 26 June 2017 that it had extended a gas supply agreement with ENEO Cameroon S.A. ("ENEO"), the Cameroon energy joint venture between UK Group Actis and the Cameroon Government, until 31 December 2017, whilst negotiations to agree a new long-term contract continued.

ENEO has informed Gaz du Cameroun S.A. ("GDC") that it is not currently in a position to extend the gas supply agreement and has ceased taking gas from GDC. ENEO is actively discussing potential solutions to this situation with the Government of Cameroon and the Power Regulator in Cameroon. VOG believes this is a temporary issue and expects a resolution in the short to medium term.

ENEO has advised the Company that it faces considerable uncertainties in terms of generation costs that can be passed on as tariffs to end users, large payment arrears from the Cameroon Government and doubts over long term power payment security. Until such issues are resolved, the Company does not believe that ENEO will be able to underwrite the financial aspects of the extension of the contracts with GDC and Altaaqa Global Solutions ("Altaaqa"); the providers of the gas fired generators, or enter into long term financial commitments at this time. ENEO has advised that it is very pleased with the service provided by GDC and Altaaqa and that the suspension is as a result of factors beyond GDC's and Altaaqa's control.

Whilst the suspension of the ENEO supply will clearly directly affect GDC in the short term (it represents an estimated 53% of Logbaba project gas sales revenues for the year ended 31 December 2017), the Company supplies gas to a diverse customer base and will continue working with these customers and other investors in the region to place the newly available gas.

ENEO currently owes GDC approximately $8.7 million gross, which the Company expects will be paid in due course.

As a result of ENEO ceasing to take the gas from VOG, the Company will immediately undertake an assessment of the Company's capital projects and its wider budget and cash flow forecasts, in order to best position the Company to deal with this outturn. The Company intends to provide a comprehensive update of 2017 performance and outline the strategy for 2018, later this quarter.


Ahmet Dik, CEO of VOG commented, "Cameroon has a very important industrial hub in Douala that has seen significant growth and cross border investment over the last five years, both into manufacturing and the power sector.

We remain confident that ENEO and the Government will rapidly find a solution that will allow GDC to continue to supply gas to ENEO and to build on the relationships we have developed with all stakeholders over the past three years.

Cameroon is an area that is in critical need of more power, with an estimated demand in excess of 150mmscf/d of gas in the Douala basin. We remain focused on increasing thermal customer demand in Douala whilst also continuing to supply gas to our 30 other customers, building non-grid solutions for its industrial customers and advancing the compressed natural gas business whilst maintaining our strong position as the sole provider to the region."

http://www.moneyam.com/action/news/showArticle?id=5805688

I don't hold VOG but I have considered it a few times. I think the company has done well getting into production and can't be blamed for the current situation. It did the right thing in releasing the information when it did and has taken sensible holding actions in the meantime. Good luck to all holders. There may be some panic selling come Monday but I suspect the price will recover somewhat over the coming weeks. May even buy some myself if I consider the selling over done.

Victoria Oil & Gas hit as major gas customer deal expires
08:09 08 Jan 2018

“VOG believes this is a temporary issue and expects a resolution in the short to medium term.”



Victoria Oil & Gas plc (LON:VOG), in a statement after Friday’s market close, revealed that an arrangement with one of its gas customers in Cameroon has expired.

The company told investors that ENEO Cameroon informed VOG subsidiary Gaz du Cameroun (GDC) that it is not currently in a position to extend a gas supply agreement which expired at the end of 2017, and as such the customer has stopped receiving gas from the company.

“ENEO is actively discussing potential solutions to this situation with the Government of Cameroon and the Power Regulator in Cameroon,” VOG explained.

“VOG believes this is a temporary issue and expects a resolution in the short to medium term.”

“ENEO has advised the company that it faces considerable uncertainties in terms of generation costs that can be passed on as tariffs to end users, large payment arrears from the Cameroon Government and doubts over long term power payment security.”

VOG added that it does not believe ENEO will be able to underwrite the financial aspects of a contract extension at this time.

ENEO had been taking some 53% of the gas from VOG’s Logbaba field, and as such the AIM-quoted company noted that the suspension of supply to ENEO would “clearly directly affect GDC in the short term” though it added that the remainder of its customer base is diverse and it continues to work with those customers to place newly available gas.

VOG has been advancing new drilling to expand its supply capacity in Cameroon, with the recent La-108 well at Logbaba beating expectations.

The company added that ENEO currently owes GDC some US$8.7mln gross, and it said it expect to be paid in due course.

It is now anticipated that VOG will immediately carry out an assessment of the Company's capital projects and its wider budget and cash flow forecasts, in light of the ENEO news.

VOG told investors that it will update on its 2017 performance and its strategy for 2018 later in the current quarter.

Ahmet Dik, VOG chief executive, said: “Cameroon has a very important industrial hub in Douala that has seen significant growth and cross border investment over the last five years, both into manufacturing and the power sector.

“We remain confident that ENEO and the Government will rapidly find a solution that will allow GDC to continue to supply gas to ENEO and to build on the relationships we have developed with all stakeholders over the past three years.”

Dik added: “Cameroon is an area that is in critical need of more power, with an estimated demand in excess of 150mmscf/d of gas in the Douala basin.

“We remain focused on increasing thermal customer demand in Douala whilst also continuing to supply gas to our 30 other customers, building non-grid solutions for its industrial customers and advancing the compressed natural gas business whilst maintaining our strong position as the sole provider to the region."

http://www.proactiveinvestors.co.uk/companies/news/189637/victoria-oil-gas-hit-as-major-gas-customer-deal-expires-189637.html

Electrician Eneo suspend supplies from Gaz du Cameroun
Monday, 08 January 2018


(Invest in Cameroon) - Victoria Oil & Gas (VOG), the parent company of Gaz du Cameroun (GDC), a British company that markets gas produced on the Logbaba field in the Littoral region of the country, announced on 5 last January to have been notified of the decision of Eneo to suspend its gas supply on behalf of the Logbaba plant (50 MW).

The concessionaire of the public utility of electricity in Cameroon was brought to make this decision, one learns in an official communique of VOG, because of the costs and, especially, of its financial difficulties which are consecutive to a debt of approximately 100 billion CFA francs claimed from the state.

From sources internal to the company, the half-masting of the Logbaba gas power plant, following the suspension of gas supplies from GDC, will have no impact on the balance between supply and demand for electricity in Cameroon.

"Logbaba is a temporary source, which is made not to last. This plant was an emergency solution, pending the commissioning of the Lom Pangar and Memve'élé dams. Lom Pangar is already there and can handle the situation, despite a slight drop in the water level recorded in its reservoir in 2017, "says an authorized source.

https://translate.google.co.uk/translate?hl=en&sl=fr&u=http://www.investiraucameroun.com/&prev=search

There may be long term silver linings for Victoria Oil & Gas - expert
15:08 08 Jan 2018

“Whilst losing 53% of one’s business overnight is hardly business school protocol, longer term there is much to be gained from this move,” Malcolm Graham Wood said in a note.



Looking at the longer term picture, oil companies expert Malcolm Graham Wood reckons there may be some positives to glean for Victoria Oil & Gas plc (LON:VOG) which, for the short-term at least, has lost its largest customer.

VOG, in a statement after market close on Friday, told investors that an arrangement with one of its gas customers in Cameroon has expired. ENEO Cameroon, the customer, informed VOG subsidiary Gaz du Cameroun (GDC) that it was not in a position to extend a gas supply agreement which expired at the end of 2017, and as such the customer has stopped receiving gas from the company.

“ENEO is actively discussing potential solutions to this situation with the Government of Cameroon and the Power Regulator in Cameroon,” VOG explained. “VOG believes this is a temporary issue and expects a resolution in the short to medium term.”

“ENEO has advised the company that it faces considerable uncertainties in terms of generation costs that can be passed on as tariffs to end users, large payment arrears from the Cameroon Government and doubts over long term power payment security.”

VOG added that it does not believe ENEO will be able to underwrite the financial aspects of a contract extension at this time.

ENEO had been taking some 53% of the gas from VOG’s Logbaba field, and as such the AIM-quoted company noted that the suspension of supply to ENEO would “clearly directly affect GDC in the short term.”

It added, however, that its remining customer base is diverse and it continues to work with those customers to place newly available gas.

VOG has been advancing new drilling to expand its supply capacity in Cameroon, with the recent La-108 well at Logbaba beating expectations.

The company added that ENEO currently owes GDC some US$8.7mln gross, and it said it expect to be paid in due course. It is now anticipated that VOG will immediately carry out an assessment of the company's capital projects and its wider budget and cash flow forecasts, in light of the ENEO news.

VOG told investors that it will update on its 2017 performance and its strategy for 2018 later in the current quarter.

“Hardly business school protocol”

“Whilst losing 53% of one’s business overnight is hardly business school protocol, longer term there is much to be gained from this move,” Malcolm Graham Wood said in a note.

He highlights that VOG must now focus on customers that will using the gas for heating to support the company now that the supply to the power generating customer is offline. He also notes that VOG’s subsidiary has so far grown its thermal customer base to over 30, and more are being sought.

“It will, as I have said, accelerate GDC’s move into the thermal customer market which it should be remembered carries a much higher margin, and in future lead to significantly less of a reliance on ENEO,” he said.

“After all the Douala and Cameroon energy blueprint envisages the use of not only Logbaba but Matanda gas for power generation and thermal supply to business customers, it is unlikely that this action will have been fully thought through and may yet prove unwise.

“Having said that it will increase to focus of GDC to engage with other customers across the board and lessen their dependence on a small number of power generators.”

Election year in Cameroon

The oil analyst also noted that it is an election year in Cameroon, and as such he expects the situation may become charged.

“Gas is still, after hydroelectric power, the cheapest fuel for power generation in country and in the dry season increasingly one upon which industry and business has become dependent.

“For this reason one must carefully consider whether the Government, by starving ENEO of money to pay for gas supplies and hence electricity through the grid, is making a wise choice.

“This will result in load shedding and blackouts which would be increasingly unpopular in what we must remember is election year.”

Douala is an important industrial hub

Ahmet Dik, VOG chief executive, said: “Cameroon has a very important industrial hub in Douala that has seen significant growth and cross border investment over the last five years, both into manufacturing and the power sector.

“We remain confident that ENEO and the Government will rapidly find a solution that will allow GDC to continue to supply gas to ENEO and to build on the relationships we have developed with all stakeholders over the past three years.”

Dik added: “Cameroon is an area that is in critical need of more power, with an estimated demand in excess of 150mmscf/d of gas in the Douala basin.

“We remain focused on increasing thermal customer demand in Douala whilst also continuing to supply gas to our 30 other customers, building non-grid solutions for its industrial customers and advancing the compressed natural gas business whilst maintaining our strong position as the sole provider to the region."

http://www.proactiveinvestors.co.uk/companies/news/189676/there-may-be-long-term-silver-linings-for-victoria-oil-gas-expert-189676.html

Cameroon has suddenly become energy rich!

Cameroon - Central Logbaba: ENEO suspends gas supplies
By Josiane Rose NDANGUE 09-Jan-2018

According to a statement by Victoria Oil & Gas, the parent company of Gaz du Cameroun (GDC), the reason for the suspension is a debt of 100 billion CFA francs that Noo claims to the state.

It is an information that relays the newspaper Le Jour in its edition of January 9, 2018. According to a statement from Victoria Oil & Gas headquarters of Gaz du Cameroun (GDC), the company Eneo has decided to suspend its supplies on behalf of the Centrale de Logbaba. The UK company on January 5, 2018 reported that it had been notified of Eneo's decision. Our colleague reports that, according to this communiqué, the concessionaire of the public electricity service in Cameroon has been pushed to reach the point of suspension for the following reason. The costs and financial difficulties of Eneo which are consecutive to a debt of about 100 billion FCFA claimed to the State of Cameroon.

Our colleague recalls that in mid-December 2017, the Ministry of Finance (MINFI) had to release in favor of Eneo the sum of 15 billion FCFA in advance of its debt raised. " A real breath of fresh air for the power generation and distribution company currently on the brink of financial asphyxiation, " writes the newspaper. From its columns we learn that Enne, having received this money from MINFI, has paid its own debt contracted with its suppliers. The suppliers are Tradex Petroleum Distribution Company, SONARA National Refinery Company and KPDC.

It should be noted that the first two companies generated sometimes supply thermal power stations with fuel. The third company mentioned above is the owner of the Kribi gas station. Sources from our colleague reveal that however, this suspension will have no impact on the balance between supply and demand for electricity in Cameroon. This is because the Lom Pangar hydroelectric dam was commissioned.

https://translate.google.co.uk/translate?hl=en&sl=fr&u=http://www.cameroon-info.net/article/cameroun-centrale-de-logbaba-eneo-suspend-ses-approvisionnements-de-gaz-312510.html&prev=search

Trafelet Brokaw Capital Management, LP have entered the 'significant shareholders' list with 7,422,629 (5.12%)

http://www.moneyam.com/action/news/showArticle?id=5814742

VOG have updated their website with this new addition but haven't altered the "As of November 2017".........................

Translated via Google:

Cameroon: Victoria Oil & Gas Reaches 14.6 Million Cubic Feet / Day of Gas on Logbaba Field in H1 2017



(Invest in Cameroon) - The information is from the National Hydrocarbons Company (SNH), agent of the State of Cameroon in the oil sector. According to unaudited figures, published by Victoria Oil & Gas (VOG), the parent company of the Gaz du Cameroun (GDC) operator, the average gas production, over the first six months of 2017, is 14 , 6 million standard cubic feet (mmscf) per day, on the Logbaba field.

VOG also reports that gas sales amounted to 2,345 mmscf over the period under review, generating revenues of USD 15.4 million. SNH reports that Logbaba field production is expected to grow with the start of gas production at the LA-107 ST1 well on 22 September. This well drilled at more than 3,000 meters, was tested by GDC at a maximum flow of 54 million m3 of gas per day. He was also connected to the gas processing plant in Logbaba.

The drilling rig that performed the work was transferred to drill the LA-108 ST2 well. The operator hopes to reach, thanks to this well, a column of 100 meters net of gaseous sands, for a depth between 2 107 meters and 2 760 meters.

http://www.investiraucameroun.com/hydrocarbures/1801-10111-cameroun-victoria-oil-gas-a-atteint-14-6-millions-de-pieds-cubes/j-de-gaz-sur-le-champ-logbaba-au-1er-semestre-2017

When is the next update due?

The Q4 2017 Operations Update would be due over the next two weeks or so and still might be but from the 5th January:

"The Company intends to provide a comprehensive update of 2017 performance and outline the strategy for 2018, later this quarter."

http://www.victoriaoilandgas.com/investors/news/gas-supply-contract-eneo-not-extended

Thanks for the info