Victoria Oil & Gas Live Discussion

Ripley94 28 Jan 2019

Jamie Nimmo (Mail on Sunday) He wrote an article indicating the bid for FPM would fail 23rd Dec is he any good ?

Ripley94 28 Jan 2019

58 or 50? VOG… XXXX Its got a lot worse since big drop today after newspaper reports of placing over weekend the share price is a low 13.75p

Totally_Wired 28 Jan 2019

Jamie Nimmo (Mail on Sunday) For those that haven’t seen, there was an article published over the weekend by a Jamie Nimmo basically saying VOG require more funds and a placing is on the way. STOCK MARKET WATCHLIST: Is the well running dry as energy firm seeks capital? By Jamie Nimmo For The Financial Mail On Sunday Published: 22:38, 26 January 2019 | Updated: 22:50, 26 January 2019 The rumour swirling in the City is that AIM-listed gas producer Victoria Oil & Gas is on the hunt for more funds. The word on the street is that the company – which operates as Gaz du Cameroun in the Francophone West African state of Cameroon – has been tapping up shareholders for a new share placing to raise cash. All of this might not come as too much of a surprise to those who monitor the company’s activities. The firm is known to have a large following of private investors. Victoria Oil & Gas warned at the end of September that it was keeping a close eye on cash levels, which stood at just $3.2 million (£2.4 million) at the end of June, after burning through $3.8 million in six months. It seems the well has at last run dry. The shares have been on the slide in 2019, leaving it with a market value of just over £20 million. Even an update on its increasing gas production levels last week failed to lift the share price. A spokesman for the company, which is led by Kevin Foo, said it did not comment on ‘market speculation regarding capital raisings’. [link]

Totally_Wired 25 Jan 2019

RNS-Historic 25 January 2019 Change of Registered Office Address Victoria Oil & Gas Plc announces that it has changed its registered office address with immediate effect to 200 Strand, London, WC2R 1DJ, United Kingdom.

Totally_Wired 24 Jan 2019

General Interest Translated (roughly) via google The Cameroonian government seizes complaints on the quality of water and electricity (Invest in Cameroon) - On the occasion of the annual conference of the Ministry of Water and Energy, Gaston Eloundou Essomba (photo), the minister of the sector, announced on January 23 in Yaoundé, that his services have complaints about the quality of water and electricity. Indeed, it has been several months since consumer associations complain about water cuts. Worse, this liquid supposed to be odorless, colorless and tasteless when running faucets, presents a curious yellowish color or downright blackish. Some users say that sometimes this water tastes like chlorine. Minister’s response to these recriminations: " With regard to the public water and sanitation service, we are still receiving complaints about the quality of the service provided, so I [your colleagues] invite you to deepen your reflection to make proposals for improving the quality of drinking water supply service, because as the saying goes, water is life . Regarding electricity, Gaston Eloundou Essomba said that the best quality of public service will pass by the significant reduction in the number, but also the cut-off time. " For this, I expect from you proposals for reliable indicators to allow dealers Eneo and Sonatrel [National Electricity Transmission Company] to work in this direction in accordance with contracts that bind them to the state . " [link]

Totally_Wired 23 Jan 2019

Cameroon-Industrialisation Master Plan (PDI) & Africa Energy As Money-am is about to shut I thought it might be a good idea to add some dedicated and updated Research pages here. New dedicated and updated page Cameroon-Industrialisation Master Plan (PDI) 18th March 2017 Public administrations get acquainted with the new industrialisation master plan 25th January 2017 Cameroon plans to become “the factory of the new Industrial Africa by 2050” 10th June 2016 The master plan for industrialisation will prioritise the agro, energy and digital sectors Central African Power Pool (CAPP) Chad Jan 2019 EU joins AfBD in financing the Cameroon-Chad power interconnection project Equatorial Guinea 2014 Electricity regulation in Equatorial Guinea: overview Africa Energy Jan 2018 Power in Africa: Prospects for an Economic Foothold May 2017 Atlas of Africa Energy Resources (pdf) Apr 2017 UPDATED REGIONAL POWER STATUS IN AFRICA POWER POOLS REPORT (pdf)

Totally_Wired 21 Jan 2019

VOG-Interviews Victoria Oil & Gas looks ahead to increased cash flow and market recognition after ENEO renewal (Video) 13:23 21 Jan 2019 Victoria Oil & Gas plc (LON:VOG) chairman Kevin Foo tells Proactive London’s Andrew Scott its power generation customer ENEO has now doubled its consumption levels, following December’s gas sales deal, and, its power station is operating at full capacity at 30 megawatts. Foo says the average gas production rate measured 8.5mln cubic feet per day for the month to date (as of 19 January) … and in the seven days ended January 19, the average rate was marked at 9.9mln cubic feet. He adds that ENEO has expressed interest in increasing power generation levels – 20 megawatts from its Bassa Power Station – creating additional gas demand of around 4mln cubic feet per day. Foo says talks are continuing with other independent power producers who are evaluating additional power supply options to meet the electricity shortfalls in the City of Duala. [link]

Average_Dave 21 Jan 2019

RNS 21.01.19 - Production Update Victoria Oil & Gas Plc (“VOG” or “the Company” or “the Group”) Production Update Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor, is pleased to provide an update on the increasing production levels at the Logbaba Project. Highlights: · Average production rate MTD for January 2019 of 8.5mmscfd as at 19 January 2019 · 91% increase on Q4 18 daily average production levels · 9.9mmscfd average production for the 7 days to 19 January 2019 · 12.96mmscfd peak level reached on 18 January 2019 YTD · ENEO consumption levels at the Logbaba Power station have doubled to 30MW since the resumption of the contract in late December The Company announced on 24 December 2018 that Gaz du Cameroun (“GDC”) had entered into a binding term sheet on the 21 December 2018 with ENEO Cameroon SA (“ENEO”) to resume gas supply to the 30MW Logbaba Power Station. Gas supply and power distribution commenced 22 December 2018. Since the resumption of the contract with ENEO in late December, ENEO consumption levels have doubled from 15MW to the full 30MW at Logbaba as the equipment has been recommissioned. ENEO gas consumption has recently exceeded take or pay levels of 4.88mmscfd. The term sheet with ENEO sets out 3-year contract duration with peak delivery of 6.1mmscfd to be made available to the Logbaba station on an 80% minimum Take or Pay basis throughout the year, which equates to a minimum average additional gas supply of 4.88mmscfd. This differs from the previous contract, which contained a seasonal minimum take or pay element of 90% during the January to June dry season and 30% during the wet season July to December. The initial gas sale price of $6.75 per MMBtu will increase over the three-year term of the agreement by $0.10/MMBtu on each anniversary of the effective date of the agreement. Whilst gas supply for grid power to ENEO and to others will always be a key strategy of the Group, the Board, as previously announced, is focussed on the importance on the diversification of the customer base to reduce dependence on any single customer. Our industrial customers are consuming at record levels as reported in our Q4 18 operations update and the business development of these and other routes to market continue to be developed. This announcement contains inside information. END - - - A_D

Totally_Wired 17 Jan 2019

RNS 17.01.19 - Q4 2018 Operations Update Yes, tables are strange creatures! Link to Q4 Operations Update [link]

Average_Dave 17 Jan 2019

RNS 17.01.19 - Q4 2018 Operations Update Victoria Oil & Gas Plc (“VOG” or “the Company” or “the Group”) Q4 2018 Operations Update Victoria Oil & Gas Plc, the Cameroon based gas and condensate producer and distributor, provides an update on the Group’s operations for the three months ended 31 December 2018 (“Q4 18” or “the Quarter”). Highlights: · Following signature of a binding term sheet with ENEO for a 3-year contract to supply the 30MW Logbaba Power Station, sales to ENEO recommenced on 22 December 2018 · 2018 peak rate of 7.67mmscfd reached on 28 December 2018, following resumption of sales to ENEO · Q4 Gross gas sales of 403.8mmscf +14% on Q3 (355.6mmscf) · Q4 Average gas production rate of 4.45mmscfd +20% on Q3 (3.72mmscfd) · Gross Gas sales for 2018 of 1,410.0mmscf (2017 3,683.6mmscfd; -62%) · Average production rate for 2018 of 3.75mmscfd (2017 10.98mmscfd; -66%) · Grid power sales decreased by 99% on 2017 due to ENEO non-renewal of contract, announced on 5 January 2018 · Thermal consumption increased 5% on 2017 with addition of 3 new customers and 2 reconnections. · Industrial power consumption increased 12% on 2017 with addition of 3 new customers Post Period End: · Average production rate MTD for January 2019 of 7.8mmscfd as at 14 January 2019 · Presidential Decree received on Matanda license assignment Logbaba - Quarterly Production Update The Q4 18 gross and net gas and condensate sales for Logbaba and Gaz du Cameroun S.A., (“GDC”), are as follows: Amounts in bold are gas and condensate sales attributable to GDC (57%): Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Gas sales (mmscf) Thermal 200 352 194 341 174 305 179 313 177 312 Industrial power 15 27 9 15 9 15 10 17 10 18 Grid power 15 25 0 0 0 0 0 0 226 396 Total (mmscf) 230 404 203 356 183 320 189 330 413 726 Average gas production (mmscfd) 4.45 3.72 3.30 3.50 7.94 Condensate sold (bbl.) 2,701 4,738 2,298 4,032 1,657 2,907 1,654 2,900 3,951 6,931 Consumption Increased Notwithstanding ENEO resuming gas consumption at the end of December, the thermal and industrial power customers showed encouraging consumption uplifts. · Q4 18 thermal customer usage increased by 3% on the previous quarter (Q4 2018 increased by 5% on Q4 2017);and · Q4 18 industrial power customer usage increased by 80% on the previous quarter (Q4 2018 increased by 12% on Q4 2017). These increases reflect GDC management’s focus on driving the industrial customer growth, during the year, to diversify and reduce the reliance on the grid power customers. In addition, an existing Thermal customer, Agrocam, which had been connected for power consumption in the previous quarter started consuming gas for power on 2 October 2018. The consumption levels post period end, as a result of ENEO coming back online, are: · 7.67mmscfd to 14 January 2019 · 9.19mmscfd peak reached to date in January 2019 Grid Power Update The Company announced on 24 December 2018 that Gaz du Cameroun (“GDC”) had entered into a binding term sheet on the 21 December 2018 with ENEO Cameroon SA (“ENEO”) to resume gas supply to the 30MW Logbaba Power Station. Gas supply and power distribution commenced 22 December 2018. The parties are committed to executing Fully Termed Agreements and providing appropriate payment guarantees during Q1 19. The term sheet with ENEO sets out 3-year contract term with peak delivery of 6.1mmscfd to be made available to the Logbaba station on an 80% minimum Take or Pay basis throughout the year, which equates to a minimum gas supply of 4.88mmscfd. This differs from the previous contract, which contained a seasonal minimum take or pay element of 90% during the January to June dry season and 30% during the wet season July to December. The initial gas sale price of $6.75 per MMBtu will increase over the three-year term of the agreement by $0.10/MMBtu on each anniversary of the effective date of the agreement. Presidential Decree on Matanda Received GDC received the Decree signed by H.E. President Paul Biya on December 17, 2018, authorising the transfer of interest in the Matanda Production Sharing Contract (“Matanda PSC”) license assigned from Glencore in early 2016. This secured GDC 75% ownership and operatorship of the Matanda PSC, adjacent to its Logbaba concession, which at 1,235 square kilometers, is over 60 times the area of the Logbaba concession. The North Matanda offshore field contains estimated gross 2C Contingent Resources of 150bcf of recoverable gas and 6 million barrels of condensate, with an upside of 1Tcf of gas. The initial focus, however, will be onshore exploration prospects close to Logbaba gas pipeline network, where gross resource potential is estimated at 1,303bcf of gas (Mean GIIP) contained in 23 prospects and leads. The existing GDC infrastructure, with proximity to Matanda, will allow new discoveries to be delivered to industrial users efficiently and promptly. A minimum work programme obligation of one exploration well, plus seismic reprocessing is to be completed in the first 2 years of the assignment following the Presidential Decree. Outlook for 2019 Grid Power ENEO has expressed interest in increasing power generation levels to include an additional 20MW from its Bassa Power Station in due course. This would add an additional 4mmscfd to current demand, if concluded. Discussions continue with other IPP’s who are evaluating additional power supply options to meet the electricity shortfalls that the city of Douala continues to experience. GdC is targeting agreement with at least one of these IPP’s, during 2019, to kick off a new power project in Douala. Non-Grid Business Development Whilst gas supply for grid power to ENEO and to others will always be a key strategy of the Group, the Board, as previously announced, has identified that it is important to diversify the customer base to reduce dependence on any single customer. Rebalancing of Group customer consumption with an emphasis on non-grid remains a major driver for 2019. The considerable reserves upgrade announced in June 2018 provides the basis to seek long term sales contracts for growth of both grid and non-grid sales. The key focuses for management will be to: · Increase Thermal consumption by actively marketing the benefits of natural gas over liquid fuels; · Accelerate the Groups gas to power programme for Industrial Power customers; · Leverage VOG’s relationship with Naturelgaz, aimed at bringing first CNG customers online in 2019; and · Examine potential rural energy needs using CNG as a key fuel that allows integrated and distributed power solutions for communities with no grid power access. The Group’s “Energy Well” solution. Industrial Power With ongoing power shortages in Douala, the Board expects Industrial Power to yield substantial revenues over the next 10 years for GDC. Over 30 existing and new customers have expressed interest in an industrial power solution; the GDC Industrial Power Unit. As most of these proposed power customers are already connected to GDC’s gas pipeline, adding gas fired power generation at these sites would increase gas consumption with minimal downstream costs for GDC. GDC has completed negotiations with and issued GSA’s to 11 customers and signed GSA’s with 4 customers. The Board expects a further 7 customers to sign in the near term. GDC is working with Altaaqa and other equipment suppliers to fast track generators for customers. The target is to have a number of Industrial Power customers online by end of 2019, consuming over 4.5mmscfd of gas with no seasonality at prices of around US$13/MMBtu. CNG Development On 26 June 2018 the Company announced an agreement to partner with Naturelgaz Sanayi ve Ticaret A.S.(“Naturelgaz”) on CNG projects. Naturelgaz is Europe’s largest CNG supplier and distributor and brings valuable expertise within this field to support GDC. The partnership will provide CNG infrastructure for customers in and around Douala. Marketing studies by GDC and Naturelgaz have concluded that five types of customers would use CNG in Cameroon; thermal, off-grid power generation, commercial trucking, public transportation, and domestic transportation. The studies indicate the near-term potential of the CNG market, within a 60 km radius of the Logbaba facilities, is 2mmscfd thermal and 2mmscfd industrial power. To date, 20 customers have expressed interest in CNG within a 60 km radius of Douala. Design, engineering and cost estimation has now been completed which demonstrates feasibility for an initial project to build a 2mmscfd CNG plant in Douala for CNG distribution. Negotiations with customers on offtake agreements are in progress which, on signature will enable the project to kick off. The Board believes that CNG will compete strongly against diesel and heavy fuel oil which are currently priced in Cameroon at $25/MMBtu and $15/MMBtu respectively. The Energy Well Concept Seventy four percent of the Cameroon population has access to the National Grid and 86% of the population lives within 15km of the power network. However, household electrification stands at only 23% and there are approximately 8 million rural Cameroonians who have no access to grid electricity. This situation is replicated in many African nations, where less than 10% of the rural population has access to reliable grid electricity. The average rural household in Cameroon requires about 1kWh of energy per day. VOG is pursuing its ‘Energy Well’ system, utilising CNG, as the bridge between traditional hydrocarbons and renewable energy to provide a seamless, clean and reliable energy solution to regions that are currently poorly served by conventional energy sources. GDC has teamed up with US company Blocksyte Inc on development of the Blockchain elements of Energy Wells. The Company is working with Blocksyte, Altaaqa and others to start field tests this year on the key components of the business. Logbaba La-108 Insurance Claim The Company has now received a full independent technical analysis, by an internationally respected group, of the drilling operations on the Logbaba La-108 well in the aftermath of a drill string washout on 7th March 2017. On the basis of this work, the Company will continue to pursue the insurance claim to recover the costs associated with the event. As is normal in these situations, the outcome of the claim is not certain. The gross amount of the claim submitted is $24.5 million. Matanda Having received the Presidential Decree conferring title to the Matanda PSC, GDC will continue subsurface planning work for the initial drilling programme at Matanda. The Company is continuing to explore financing options for the drilling programme, including a potential farm-down of the asset, to fund further development. West Medvezhye (“West Med”) The Company has identified a number of potential buyers for the West Med Asset in Russia. Negotiations are ongoing targeting a sale in 2019. OECD Instance Following a complaint to the Organisation for Economic Co-operation and Development (“OECD”) in 2018 and various communications with the UK National Contact Point (“NCP”) for promotion of the OECD Guidelines for Multinational Enterprises (the “Guidelines”), the NCP has decided, on an “Initial Assessment” that issues raised merit further examination (based on initial information from both parties). The instance was made by the association of residents of Ndogpassi I, II and II and the Good Neighbours circle of Logmayangui in relation to the establishment and operation of the Logbaba Project in Cameroon. The Guidelines are principles for responsible business conduct in areas including employment, human rights and the environment. While the Board and GDC both strongly believes that the Company has and has had the necessary policies and processes in place, we welcome the opportunity to engage further with the complainants to understand their concerns and to agree how we can advance together. The Initial Assessment, once published, will be accessible on the OECD’s website [link] . The NCP stresses in its report that its decision to examine further the claim against VOG is not a finding against the Company. We look forward to engaging in NCP-facilitated mediation, which the Company anticipates will take place over the coming months. Further announcements will be made as and when appropriate. END - - - Sorry about the tables; they don’t copy and paste well. A_D

mjones727 26 Dec 2018

Good post Francis. In the past the price range was $7.50 to $16. Now the range is $6.65 (ENEO) to $16. Most thermal will be paying $16 apart from Dangote/SABC who i would image would pay a bit less as large users. Industrial power is set at $13.

francis 26 Dec 2018

New revenue? The price was given by VOG earlier in the year “price range US$7.50 to $16.00 per mmbtu” this is from [link] (Slide 3). I guess they are selling the rest of the gas to other customers even cheaper No - you would expect ENEO to pay less than anyone else, because of the volume they are taking. If one customer is taking as much gas as all the others put together, of course they will get a good deal. So this will not double revenue, but it is a useful boost when you think that the marginal cost of additional gas is close to zero: the main costs are the up-front drilling and infrascructure, plus network maintenance, all of which is either paid for or is being incurred anyway.

mjones727 25 Dec 2018

The_Marin in response to your post yesterday i have some info for you. The new ENEO deal is at $6.75 mmbtu rising to $6.95 mmbtu. Before ENEO came back online the company was doing about 5 mmscf/d for thermal and industrial power. VOG have said many many times that thermal commands up to $16 mmbtu and Ind power is $13 fixed. Way more than ENEO. I haven't a clue as to why you say "So how much is 4.9mmscf/d in cash terms? I guess they are selling the rest of the gas to other customers even cheaper otherwise they would have given us an expected daily revenue rather than expect us to calculate it ourselves." It is very easy to work out revenue figures. Nothing suspicious at all. VOG will only give actual rev figures in interim and annual reports. Nothing corrupt at all about his company. They sell gas to customers. It couldn't be clearer. I have reported your post mentioning corruption as this is defamation. You are talking nonsense.

Average_Dave 24 Dec 2018

New revenue? You should be able to calculate it. see below result from internet search: “One thousand cubic feet (Mcf) of natural gas equals 1.037 million Btu (MMBtu), 10.37 therms. The heat content of natural gas may vary by location and by type of natural gas consumer, and it may vary over time.” Revenue up by 100%, share price up by 50%. Didn’t think cost of production was that high. Go figure. A_D

HPC_Follower 24 Dec 2018

Good news- Logbaba is up and running Excellent news… should enable the SP to improve rapidly now; opening price will be much higher than the last closing price; so fine for long-suffering holders of VOG shares like myself.