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
    

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

SNH have overhauled their website recently (days/weeks) and it's filled with updated information compared to the original which was mainly out of date with anything recent being in French!

In English
In French (Eating Hot Gossip in the morning or anytime is Really Good for You!)


I'll update later..........

Interesting article:

New dams in Africa could add risk to power supplies down the line
By: Declan Conway
15th Jan 2018

"In the 1980s and 1990s parts of Africa saw a surge in dam building for energy production. After a brief hiatus there has been renewed interested. Many new construction projects are planned and underway across sub-Saharan Africa."

http://www.bizcommunity.com/Article/196/693/172206.html

The Fall singer Mark E Smith dies aged 60

Mark E Smith, lead singer with the Fall, dies aged 60

Totally Wired

Cruiser's Creek

Big New Prinz

Mr Pharmacist

African Economic Outlook

https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/African_Economic_Outlook_2018_-_EN.pdf

Translated by Google:

Cameroon must produce between 2000 and 6000 MW of electricity by 2030, according to Minister Atangana Kouna
Thursday, 01 February 2018



(Invest in Cameroon) - After the energy infrastructure under construction in the country, since 2012, Cameroon will intensify its investments in this sector, so that it can produce between 2000 and 6000 MW of additional electricity by 2030.

At least that is the opinion of the Minister of Water and Energy, Basile Atangana Kouna (photo), who dwelt on the subject, January 30, 2018 in Yaoundé, at the opening of the conference of the heads of the central and decentralized services of the ministerial department for which he is responsible.

Clearly, over the next 12 years, Cameroon must be able to at least double its installed capacity in the electricity sector, which currently barely reaches 1500 MW. The potential exists, but the country will have to take up the thorny challenge of mobilizing funding.

http://www.investiraucameroun.com/electricite/0102-10196-le-cameroun-doit-produire-entre-2000-et-6000-mw-d-electricite-a-l-horizon-2030-selon-le-ministre-atangana-kouna

Translated by Google:

In 2017, the Cameroonian state has oxygenated the cash of SMEs, up to 14 billion CFA francs
Tuesday, 06 February 2018



(Invest in Cameroon) - During fiscal year 2017, the Cameroonian Treasury paid 14 billion CFA francs to local SMEs, for the payment of various benefits, supported the Minister of Finance, Alamine Ousmane Mey (photo ), during the Cabinet Meeting in January 2018.

This member of the government has also said that this envelope is up substantially (more than 60%) from the 8.6 billion CFA francs paid to SMEs in 2016.

This government effort, however, represents a tiny part of Cameroonian SMEs' claims on the State, which has become a bad payer, because of the financial difficulties it has faced for at least two years, because of the reduction in public revenue.

The debt demanded of the state by local businesses is so enormous that neither the government nor the companies themselves are able to give the exact volume of it. Hence the current audit announced recently by the Minister of Finance.

http://www.investiraucameroun.com/entreprises/0602-10223-en-2017-l-etat-camerounais-a-oxygene-la-tresorerie-des-pme-a-hauteur-de-14-milliards-de-francs-cfa

I doubt this article heralds the renewal of the ENEO contract but might speed up the Dibamba power station conversion from heavy fuel oil to natural gas:

Cameroon secures aid to stabilize electricity sector
Published on 06.02.2018



The government of Cameroon has secured a F CFA 16.7 billion loan from Societe Generale (SG) Bank to strengthen and stabilize electricity transmission networks in the city of Douala.

According to Apa, the country’s national gazette indicates that the decision by Cameroonian President, Paul Biya instructed the Minister of Economy, Planning and Regional Development (MINEPAT) to sign the agreement with Societe Generale. The project, going by reports, is part of preparations for the 2019 African Cup of Nations (AFCON), which Douala will not only partly host, but will be the gateway to the country through its main airport.

Local reports reveal that, the project seeks to improve the supply of electricity in the nation’s economic capital, and its surroundings, strengthening public lighting systems in peripheral neighborhoods grappling with insecurity at night.

Sources say works, to provide public lighting in the city of Douala, especially in strategic locations between Douala International Airport, and the Bonanjo administrative center are well underway.

https://www.journalducameroun.com/en/cameroon-secures-aid-stabilize-electricity-sector/

Translated via Google:

Cameroon is about to launch a bond loan
Tuesday, 06 February 2018



(Invest in Cameroon) - The President of the Republic, Paul Biya, signed on February 2 a decree empowering the Minister of Finance to use issues of government securities of up to 260 billion FCFA.

According to the presidential decree, these resources are intended for the financing of the projects included in the Cameroon Finance Act for the 2018 financial year. These include projects relating to the organization of the African Cup of Nations of Football. the country organizes between June and July 2019. The 260 billion FCFA will also be used in road investments, the supply of drinking water, electrification, etc.

It should be noted that, for three years, issues of Cameroonian public securities on capital markets have generally been around CFAF 300 billion. But, because of the three-year economic program (2017-2019) signed with the International Monetary Fund (IMF) in June 2017, Cameroon has pledged to reduce its pace of indebtedness. For this reason, there is a decline of CFAF 40 billion in the issuance of government bonds between fiscal year 2017 and 2018, for example.

http://www.investiraucameroun.com/finance/0602-10226-le-cameroun-sapprete-a-lancer-un-emprunt-obligataire

Over on advfn Mr Maestro has been told by his broker that " there is a highly dilutive placing coming", I'm sure that's classed as market abuse?


"Mr Maestro
14 Feb '18 - 15:31 - 42474 of 42474

My broker has just phoned, said there is a highly dilutive placing coming to keep this company afloat for a short while.

Foo wants to retire with more millions in his personal account, pi's are paying for it.


Trust me - SELL"

https://uk.advfn.com/cmn/fbb/thread.php3?id=26413280

Nice to think VOG/GDC are next..................

Eneo reaches an agreement to settle its debt to KPDC, thus obtaining the capacity increase of the Kribi plant
Thursday, 15 February 2018

(Invest in Cameroon) - The Kribi gas plant, built in the Southern region of Cameroon and managed by KPDC, " is gradually increasing its energy deliveries to the profit " of Eneo, the public service concession holder of the electricity in Cameroon.

This standardization of deliveries from KPDC to the benefit of the electrician Eneo, revealed the general manager of the latter company (Joel Nana Kontchou), by inaugurating the headquarters building of his region Sanaga Ocean, on February 14, 2018 in Kribi; is the consequence of an agreement reached between the two partners, for the settlement of the debt claimed from Eneo.

As a reminder, at the end of last year, because of a debt that had reached "the critical threshold ", according to KPDC, this company had to reduce by 100 MW the production capacity of the Kribi gas station (213 MW ), depriving Eneo of the energy it needs to ensure optimal supply for its customers in the interconnected South network.

Unable to pay its bills to KPDC, because of cash flow difficulties, Eneo had in turn blacklisted a debt of about 100 billion CFA francs, claimed from the State of Cameroon, as consumption of administrations the public and the lack of tariffs.

The State's payment of part of this debt (CFAF 15 billion) had, moreover, allowed Eneo, in December 2017, to make an advance to KPDC, thereby relaxing a little bit the collaboration between the two countries. two companies controlled by the British investment fund Actis.

http://www.investiraucameroun.com/electricite/1502-10277-eneo-parvient-a-un-accord-pour-regler-sa-dette-envers-kpdc-et-obtient-ainsi-l-augmentation-des-capacites-de-la-centrale-de-kribi

16 February 2018
Victoria Oil & Gas Plc

Q4 2017 Operations Update and 2018 Outlook

Victoria Oil & Gas Plc, a Cameroon based gas and condensate producer and distributor, is pleased to provide an update on the Group's Q4 operations for the three months ended 31 December 2017 ("Q4" or "the Period").

Q4 2017 saw strong gas and condensate consumption levels from Gaz du Cameroun S. A's ("GDC")'Logbaba Project in Douala, Cameroon, especially during December, with the addition of 3 new thermal customers during the quarter. Wells La-107 and La-108 were completed during the quarter with initial flow rates ahead of expectations.

Q4 2017 Highlights - Record Gross Gas Sold


· Q4 Gross Gas Sold 726mmscf (18.56% increase on Q317, 11.04% increase on Q416)

· Average daily gas production for Q4 7.94mmscf/d (Q317: 6.96mmscf/d, Q416: 7.64mmscf/d)

· YE2017 Gross Gas Sold 3,684mmscf (3.29% increase on YE2016)

· YE2017 average daily gas production of 10.98mmscf/d was a record (YE2016: 10.23mmscf/d)

· Wells La-107 and La-108 completed and rig stacked

· Cash and cash equivalents at 31 December 2017 $10.4 million, net receivables $6.1m and net debt $14.0 million (31 December 2016: Net cash of $1.8 million)



2018 Outlook - Revised Production Targets and Alternative Gas Sales Initiatives

· Previously announced supply projections will be significantly impacted if ENEO Cameroon S.A. ("ENEO"), Cameroon's national electricity generating company, does not place its Logbaba and Bassa power stations back online during 2018.

· Revised year end production targets of 13mmscf/d set if Logbaba and Bassa back online by Q2 and 9mmscf/d if they remain offline

· GDC progressing bespoke gas to power initiative with industrial customers with third-party gas to power generation

· Negotiations continue with other grid power suppliers Dibamba and Grenor who confirm commitment to building power supply in Douala

· Fast track development of 2mmscf/d Compressed Natural Gas ("CNG") plant planned


Quarterly Production Update

The Q4 gross and net gas and condensate sales for Logbaba and GDC, are as follows; amounts in bold are gas and condensate sales attributable to GDC*:

***Via link below***

http://www.moneyam.com/action/news/showArticle?id=5858433

Q4 2017 Operations Update and 2018 Outlook (Continued)

Drilling Update

Wells La-107 and La-108 were successfully completed and the rig stacked in December.

La-107 is now a production well and a well plan is being finalised on La-108 to complete the clean-up and testing of the Lower Logbaba Sands. This includes recovery of the spent perforation gun. Once this is done, the Upper Logbaba Sands in La-108 can be tested, if required, as gas flows from the Lower Logbaba Sands were ahead of expectations. Preliminary internal reserve estimates for La-107 and La-108 based on well logs and flow tests are material and will be published in due course.

The final cost of the well programme was $87 million against an original budget of $40 million. This overrun was the result of a combination of many factors and a detailed analysis will be completed. However, the well control event during the drilling of La-108 was the main cause of the delay and cost overruns.

An insurance claim has been lodged with the Company's insurers to cover the substantial and material costs associated with this event and the consequential schedule and cost overrun. As is normal in these situations, the outcome of our claim is not certain.

The rig was stacked in December, with the intention of retaining it on site for the drilling of La-109. With the suspension of gas consumption by ENEO, as announced in our 5 January 2018 RNS, the Company decided to formally release the rig on 31 January 2018.


Matanda, Bomono and West Medvezhye Update

During the quarter the Group progressed with subsurface evaluation work for the Matanda Block, which indicates the potential for more than 1TCF of recoverable gas across onshore sections of the block. The Company continues to work with the Government of Cameroon to obtain the assignment of its participating share in this block.

On 2 January 2018, we announced a further extension of discussions with Bowleven Plc on the Bomono Project. This block is yet to receive a Provisional Exploitation Licence, in advance of any assignment of title from Bowleven Plc to the Company.


The Company is also remains engaged with potential buyers or partners for the West Medvezhye Project in Russia.


ENEO Update

The Government of Cameroon, ENEO, Altaaqa Global ("Altaaqa"), the genset providers to ENEO which consume GDC's gas, and GDC are in ongoing discussions about future power supply plans and we remain hopeful that a resolution will be found.

The Company believes that ENEO will resume gas consumption relatively shortly because there are significant shortfalls in power supply in Cameroon, with hydroelectric schemes not meeting the current demand. The Company believes that gas fired power remains an attractive solution because it is clean, cheap and readily available.

In our update on 5 January 2018, we reported gross ENEO receivables of $8.7 million. We are pleased to report that at the time of this announcement this gross receivable has reduced to $5.0 million. The Company expects the balance to be paid off in due course and at the latest by the end of Q2 2018.


Financial Update

Unaudited net revenue for Q4 was $4.4 million (Q4 2016: $4.6 million) and unaudited net revenue for 2017 was $23.9 million (2016: $32.8 million). The loss of revenue from ENEO, which accounted for approximately 53% of the Projects revenue in 2017, should a resolution with the parties involved not be found, would be significant for the Group in 2018.

Cash and cash equivalents at 31 December 2017 was $10.4 million (31 December 2016: $16.3 million), net receivables were $6.1m and net debt was $14.0 million (31 December 2016: Net cash of $1.8 million).

The Company had made application for an additional debt facility with local banking institutions in Cameroon during the second half of 2017. With ENEO suspending the consumption of gas, management decided to place these applications on hold until the matter is resolved.

In addition, the Company's previously announced capital expenditure program for 2018 will be deferred until further clarity is obtained on the ENEO situation.

http://www.moneyam.com/action/news/showArticle?id=5858433

Updated after amendment:

Q4 2017 Operations Update and 2018 Outlook (Continued)

Commentary and 2018 Outlook

GDC is the single onshore gas supplier in Cameroon; management estimates that with Logbaba and Matanda, GDC has potentially recoverable gas of at least 1.3 TCF and 50km of gas pipeline and support infrastructure to deliver gas to customers. GDC has a diverse customer base and whilst ENEO is our largest customer, we are connected to over 30 customer sites and believe that there is considerable expansion potential in Douala.

The Company is still in discussions with current and potential power providers Dibamba Power Development Company ("DPDC") and Grenor S.A. ("Grenor") aimed at concluding gas supply contracts with these companies for future grid power. Given the current environment, it is prudent to expect delays to the roll-out of investment into power generation, and therefore the Company has adopted a strategy of less reliance on grid power customers.

Management is expediting its support to manufacturers and producers in Douala, which are facing regular power disruptions, by providing bespoke gas fired power generation for individual customers or groups of customers. As most of these proposed power customers are already connected to the gas pipeline network, adding a gas to power generation solution will increase gas consumption with minimal additional capital costs for GDC. Furthermore, we are actively pursuing a Compressed Natural Gas (CNG) solution which will afford GDC the opportunity to reach some larger customers beyond the current pipeline infrastructure.


VOG has set an ambitious business strategy with gas sales targets building up to 100mmsc/d by 2021. The Board still believes that this target is achievable and that the demand for gas within Cameroon remains robust, however this will require positive resolution of the current problems.


The Company has revised its Operating Plan for 2018, of which key elements are:

· Renew the gas supply contract with ENEO as soon as practicable and add further grid power, including new contracts with DPDC and Grenor, but with greater price and payment security

· Sell more thermal gas to existing and new customers by working closely with them to create cost effective energy solutions

· Work with existing and new customers to create bespoke gas to power solutions with individual generator designs, mini grids and shared power from centralised generators. These solutions will allow customers to be less dependent on grid power

· Maximise return from our high-grade gas condensate. Our condensate is very high grade (47 API) and close in composition to diesel. We currently sell condensate at near to crude oil prices, which is about half the price of diesel

· Actively develop the CNG and Natural Gas Vehicle (NGV) markets. CNG would compete with diesel as a source of energy in the more remote regions, it offers considerable uplift on current margins and can be transported 250-300km

· Sustain progress on the promising Matanda and Bomono opportunities

· Review capital projects, operational and G&A expenditure rigorously to preserve cash


A provisional production target to be achieved, should ENEO not resume gas consumption in 2018 and assuming increased thermal, gas to power and CNG project implementations, has been set at 9mmscf/d by year end 2018. Should ENEO resume full production in Q2 2018, the end of year target would be 13mmscf/d.


Ahmet Dik, CEO said, "Annual gross production figures for 2017 were a record for the Company, with 3.65 BCF of gas sold compared to 3.56 BCF in 2016. We estimate a considerable gross reserve base 200 BCF (2P) at Logbaba and over 1.3TCF of unrisked gas in place in the onshore Matanda, which the Company intends to develop following Government approval. We successfully completed two production wells and secured over $23 million of new financing via a share placing.

I believe that the ENEO issue will be solved as VOG management has prioritised this matter and is focused on achieving a result in the shortest possible timeframe. The Company now has the gas reserves in place to meet industrial and grid power demand for large quantities of gas and power from parties other than ENEO.

In parallel to efforts in resuming gas consumption by ENEO, management is actively looking to place this newly available gas with new and existing customers for power generation and new thermal customers and we have set a target, without ENEO consumption, of 9mmscf/d production to be achieved by year end.

I believe that despite the suspension of ENEO supply, the Company will actually grow stronger and create a wider and more diverse product base in 2018 and will continue to build the outstanding business we have created in Cameroon."

Sam Metcalfe, the Company's Subsurface Manager, has reviewed and approved the technical information contained in this announcement. Mr. Metcalfe is a graduate in BA Geology, BSc Civil Engineering, and MSc Petroleum Engineering.

http://www.moneyam.com/action/news/showArticle?id=5858433

Q4 17 Operations Update & 2018 Outlook Replacement