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Victoria Oil & Gas posts loss following issues with ENEO contact in Cameroon
StockMarketWire.com
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Oil company Victoria Oil & Gas posted a first-half loss after it terminated a gas sales agreement in Cameroon with key customer ENEO.
Pre-tax losses for the six months through June amounted to $3.6 million, compared to losses of $7.8 million year-on-year.
Revenue rose 18% to $12.6 million, but was more than offset by expenses including a non-cash provision related to ENEO.
A notice was served in June to end the ENEO sales agreement, which was terminated on 3 July following expiry of 30-day remedy period. Receivables were being rigorously pursued, Victoria Oil & Gas said.
In the third quarter, the company's daily average gross gas sales rate was 4.7 million standard cubic feet per day of natural gas, up from 4.6 million in the second quarter.
In addition, 2,438 barrels of condensate were produced, below 3,548 barrels in the second quarter.
Net revenue for the quarter was $3.3 million.
'We are pleased with the resilience that our Cameroon business has shown through recent times and the early strides made to replace the gas sales volumes previously allotted to ENEO,' chairman Roger Kennedy said.
'The Logbaba reserves reduction reflects adjustments based on the current well stock but leaves the company with several years of supply with or without the grid power demand even without further development drilling.'
'The work programme on Matanda has yielded encouraging and significant prospectivity on the licence, in what is a rich hydrocarbon province.'
'We are also encouraged by the interest in our West Med asset.'
At 9:21am: (LON:VOG) Victoria Oil Gas PLC share price was -0.01p at 2.25p
Story provided by StockMarketWire.com
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