Totally_Wired
05 Jul 2019
Tr-1: notification of major interest in shares YF Finance Limited / Askar Alshinbayev have increased their stake in VOG from 20.90% to 23.75%. [link]
Totally_Wired
27 Jun 2019
In The Media Translated via google: Thanks to Cameroon’s gas network, 41 industrial companies now use natural gas as a source of energy Thursday, June 27, 2019 16:31 (Invest in Cameroon) - The National Hydrocarbons Company (SNH), a public company whose mission is to negotiate and monitor oil and gas contracts in Cameroon, informs that as of 1 June 2019, 41 industrial companies are connected to the distribution network built by Gaz du Cameroun (GDC). According to SNH, the 41 industrial companies connected to the GDC network have converted their burners and use natural gas as a source of energy. " The gas distribution network is being expanded to allow the connection of other industries. This network now extends over fifty kilometers ", welcomes the public company. GDC, a subsidiary of Victoria Oil & Gas, is a partner of SNH in the Logbaba association. The association put into production the natural gas reserves of the eponymous field, located in the suburbs of the economic capital Douala, to supply industries in the Bassa and Bonabéri areas with clean energy and cheaper than oil or diesel. The average gas production rate of the Logbaba field operated by GDC in early 2019 is 8.5 million standard cubic feet per day (mmscfd). This production is up 51% compared to the fourth quarter of 2018. The record level of 12.96 mmscfd was reached on January 18th. In general, the quantities of domestic gas delivered on the market are estimated by the SNH at 8,058.61 tonnes between January 1 and April 30, 2019. [link]
Totally_Wired
27 Jun 2019
RNS-Historic 27th June 2019 16:15 Victoria Oil & Gas Plc Result of Annual General Meeting (“AGMâ€) Victoria Oil and Gas Plc, is pleased to announce that, at the AGM of the Company held this afternoon, all of the resolutions that were proposed in the Notice of Annual General Meeting which was sent to shareholders, dated 24 May 2019, were duly passed.
Totally_Wired
27 Jun 2019
RNS-Historic 27th June 2019 13:10 Victoria Oil & Gas PLC Pre-AGM Trading Update Victoria Oil & Gas Plc, whose wholly-owned subsidiary, Gaz du Cameroun S.A. (“GDCâ€), the fully integrated onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, is pleased to provide an update on the Group’s operations prior to today’s Annual General Meeting. This update covers the period from 1 April to 25 June 2019 inclusive (“Q2 19†or “the Quarterâ€). Highlights: · Q2 19 average gas production rate during the period of 9.72 mmscfd (Q1 19: 10.10 mmscfd) · Q2 19 ENEO Cameroun S.A (“ENEOâ€) gas consumption consistently over 5.1 mmscfd · Q2 19 gross gas sales of 838 mmscf (Q1 19: 903mmscf) · ENEO payment of January 2019 invoice received by GDC · GDC and ENEO finalising a fully termed agreement and payment guarantee to supplement the existing binding term sheet Ahmet Dik, Chief Executive Officer of VOG commented: "The Company has continued to perform well over the past Quarter, delivering consistent production figures following the resumption of the ENEO contract whilst reducing operating costs. We have been pleased to receive the January payment from ENEO. “We continue to diversify our client base as we pursue material opportunities with other Independent Power Producers in the region that are recognizing the increasing demand for power in Douala. We remain confident about the long-term future of this business and are focused firmly on the development and expansion of our operations.†Logbaba - Quarterly Production Update Q2 19 (up to 25 June 2019) gross and net gas and condensate sales at Logbaba are as follows: See link at BOP Grid Power Update GDC has been supplying natural gas to ENEO for the 30MW power plant, located in Logbaba, over and above contracted minimum levels since it recommenced gas consumption in December 2018. Daily average gas consumption by ENEO by month has ranged between 5.1 and 6.2 mmscfd from 1 January 2019 to 25 June 2019 inclusive, with peak rates during those months ranging between 6.8 and 7.0 mmscfd. The Company is pleased to announce that payments have been received from ENEO to settle the January 2019 invoice totaling $0.8 million (net). An amount of $3.5 million (net) remains outstanding, not including amounts to be invoiced for June. GDC and ENEO are working to finalise a fully termed agreement and payment guarantee to supplement the existing binding term sheet pursuant to which the parties are currently operating. GDC continues to work closely with ENEO and interested Independent Power Producers, with a view to further establishing itself as an integral part of the growth in demand and supply of electricity to the grid power network in Douala. Trade Indebtedness During the Quarter, the Company announced that it had signed a settlement agreement with Weatherfords Services and Rental Ltd and a full and final payment of $1.4 million has been made to extinguish the outstanding debt. In accordance with the settlement, the parties have signed and filed with the relevant court consent orders for the statutory demand to be set aside, which has been approved by the judge, and the court process completed on 5 June 2019. La-108 remediation & facilities enhancement programme Planning activities are progressing for the removal of the stuck perforation gun in La-108. The work will be performed using a hydraulic work-over unit. A clean out of the wellbore (tubing and lining) will then be carried out followed by perforation of the Upper Logbaba Sands. The La-108 well will then be tied-back to the existing flowline and the flowline made permanent. Planning and engineering for enhancements to the process plant are also progressing to tie in with the La-108 well remediation. These projects are expected to be carried out in H2 19. ISO Certification GDC reported in the Q1 19 update that it had completed the International Organization for Standardization compliance (“ISOâ€) audit process for ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018. The Company is pleased to announce that the certifications have now been received confirming that GDC’s Quality, Environmental and Occupational Safety and Health management systems conform to international ISO standards. Cameroon Holdings Limited (“CHLâ€) Royalty Agreement GDC is in dispute with CHL and its legal advisers have received documentation from CHL purporting to commence litigation against GDC and the Company. Our legal advisers are assessing the validity of the claim and the Company will make further announcements in due course. Long term incentive plan - Management options Further to the Company’s circular to shareholders dated 11 March 2019, the Board is currently finalising documentation to implement a long-term incentive programme for directors and senior management, with the issue of options over a number of Ordinary Shares, priced at 14p, with an exercise period of 5 years. It is expected that such long-term incentive programme will be finalised during Q3 2019 and a further announcement will be made accordingly. [link]
Totally_Wired
14 Jun 2019
In The Media Cameroon: Victoria Oil and Gas’ average gas production reached 8.5mln mmscfd as at Jan. 19, up 51% from Q4 2018 Friday, 14 June 2019 (Business in Cameroon) - Gaz du Cameroun (GDC), the local subsidiary of Victoria Oil & Gas (VOG), saw its production increase at the beginning of 2019, after a rather difficult 2018. As at January 19, the company produced an average of 8.5 million standard cubic feet per day (mmscfd) of gas at its Logbaba field, reliable sources revealed. Record level of 12.96 mmscfd was reached on January 18. “This increase follows the resumption on 22 December 2018, under a three-year contract, of gas supplies to power utility Eneo, whose consumption has doubled. According to GDC, Eneo’s gas consumption is higher than the 4.88 mmscfd take or pay level (mechanism through which the seller guarantees the delivery of a certain quantity of gas and the buyer guarantees the payment, whether he takes delivery or not); this allows GDC to produce 30 MW of electricity,†source said. In Q4 2018, GDC’s sales increased by 14% to 403.8 mmscf compared to the third quarter. Gas production increased by 20% to 4.45 mmscfd. Throughout 2018, the average daily gas production rate was 3.75 mmscfd and sales reached 1,410 mmscfd. [link]
Totally_Wired
11 Jun 2019
In The Media Possibly getting one step closer to the Cameroon government paying ENEO so they can pay VOG/GDC what they owe for this year! (Invest in Cameroon) - For fiscal year 2018, the volume of floating debt of Cameroon amounted to more than 128 billion FCFA, according to the budget execution report of the Ministry of Finance (Minfi). According to this Administration, floating debt refers to all expenditures on domestic debt appropriations to pay unpaid government bills accumulated in the Consolidated Revenue Fund. These outstanding payments stem from, among other things, contractual commitments of the general government, current consumption, rents, shortfalls of the National Refining Company (Sonara) and marketers, in connection with the fuel price support at the pump and offset tax debts. Only, notes the Minfi, the payments made by the Directorate General of the Budget (DGB) to settle the unpaid invoices of the State at the level of the budgetary chain contributed considerably to the reduction of the stock of the floating debt. But the fact remains, it is added, that this practice poses a problem of accounting sincerity and efficient management of the treasury. " Controlling the volume of floating debts is not perfect. Moreover, they are charged to domestic debt credit lines, irrespective of the economic nature of the transactions, in contravention of the principle of budgetary specialization. In addition, the payment of these operations strike the cash requirements of the exercise, and raises the problem of their predictability, "says the Minfi. In order to control and avoid the advent of new floating debts, the Minfi, in its report, thinks " that it would be appropriate to carry out an inventory of all the liabilities of the State upstream of the Treasury as well as debts in good and due form. The results of this audit should be forwarded to the Autonomous Sinking Fund (CAA) for payment in respect of the unstructured domestic debt according to a predetermined schedule ". In addition, underlines the report, a mechanism for monitoring new unpaid bills at the DGB would be possible. Objective: to have a good control and ensure the systematic inclusion in the respective budgets of the administrations that have generated or in the common chapters for other cases, while respecting the economic nature of said operations. [link]
Totally_Wired
07 Jun 2019
In The Media Translated via google: By the end of April 2019, more than 150 Cameroonian communities were without electricity (Eneo) (Invest in Cameroon) - In its report of activities at the end of April 2019, Eneo, the concessionaire of the public electricity service in Cameroon, confesses a " deterioration " of the quality of service on its network. " Certainly, work on the network has been intensified, but there is an increase in micro-cuts (less than an hour), with an average of more than two each day, " says the company. This power generation and distribution company also reveals that more than 150 Cameroonian communities were not supplied with electricity by the end of April 2019. Fifty-one of these localities are in the western region of the country. . " In general, the recovery time has lengthened for the following reasons: the difficulties of access in the Center, the Sanaga maritime, the Ocean and the East; the security situation in the South West, North West and Far North; the difficulties of supplying wood poles; the difficulties of having foreign currency to pay suppliers abroad, "explains Eneo. In addition to these underperformances in the distribution of electricity, Eneo Cameroon announces having recorded a " rate of extra billing and other anomalies slightly up, several cases of irregular cut-off periods after effective deposit of bills and a significant decrease in the rate of treatment. claims ". However, says the company, " improvement actions are underway ". [link]
Totally_Wired
05 Jun 2019
Tr-1: notification of major interest in shares VOG have updated their website to reflect todays news: Securities in Issue Number of shares in issue: 256,428,061 Percentage of shares not in public hands: 33.43% Free Float: 66.57% Holdings of Significant Shareholders As of June 2019 the Company is aware of the following persons who hold, directly or indirectly, voting rights representing 3% or more of the issued share capital of the Company to which voting rights are attached: Name Number of Shares Percentage of issued share capital YF Finance Limited 53,313,929 20.791% Hadron Capital LLP 27,440,962 10.701% Zug Finance 8,471,991 3.304% Forest Nominees Limited (GC1) 7,775,366 3.032% [link]
Totally_Wired
05 Jun 2019
RNS-Historic 05 June 2019 Victoria Oil & Gas Plc Issue of Shares Victoria Oil & Gas Plc announces that a total of 1,354,116 new ordinary shares of 0.5p each in the Company (“Ordinary Sharesâ€) have been issued in respect of the following: · a total of 961,546 Ordinary Shares for bonus awards made to certain employees of the Group for the year ended 31 December 2018 at an issue price of 13 pence per share. The Directors of the Company were not granted bonus awards; · 152,088 Ordinary Shares in lieu of cash payment to a former consultant at an issue price of 22.84 pence per share as per the contract terms; and · 240,482 Ordinary Shares to Kevin Foo, a former Director, pursuant to the exercise of options at nil cost as per the terms of the option agreements. An application has been made to the London Stock Exchange for the admission of the new Ordinary Shares to trading on AIM (“Admissionâ€). Admission is expected to become effective and dealings in the new Ordinary Shares are expected to commence at 8.00 a.m. on 10 June 2019. Following Admission, the Company will have 256,428,061 Ordinary Shares in issue. With effect from Admission, the figure of 256,428,061 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, securities of the Company under the FCA’s Disclosure Guidance and Transparency Rules. The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares in issue. [link]
Totally_Wired
04 Jun 2019
RNS-Historic 4 June 2019 Victoria Oil & Gas Plc CREDITOR SETTLEMENT AGREEMENT Victoria Oil & Gas Plc is pleased to announce that its wholly owned subsidiary, Gaz du Cameroun S.A. (“GDCâ€), has signed a settlement agreement with Weatherfords Services and Rental Ltd (“Weatherfordsâ€) and a full and final payment of $1.4 million has been made to extinguish the outstanding debt. In accordance with the settlement, the parties have signed and filed with the relevant court consent orders for the statutory demand to be set aside, which is now only a matter of process at court. With this settlement GDC has now settled all outstanding obligations relating to the drilling programme of La-107 and La-108 at Logbaba. [link]
Totally_Wired
28 May 2019
RNS-Historic 28 May 2019 Victoria Oil & Gas Plc Annual Report & Accounts to 31 December 2018 Victoria Oil & Gas Plc announces that the following documents are now available on its website at [ www.victoriaoilandgas.com](http:// www.victoriaoilandgas.com) : · Annual Report & Accounts for the year ended 31 December 2018; and · Notice of Annual General Meeting to be held on Thursday 27 June 2019 at Kerman & Co LLP, 200 Strand, London, WC2R 1DJ at 3.00 p.m. The above-mentioned documents will be posted to those shareholders that have requested printed copies on 3 June 2019. Shareholders who have not opted for electronic communications will receive a personalised Proxy Form for the Annual General Meeting to complete and return to our Registrars by 25 June 2019. The Company’s shareholders can elect to receive notification by email of the publication of future communications from the Company by registering on www.investorcentre.co.uk. Link to Annual Report & Accounts: [link]
Totally_Wired
24 May 2019
VOG-Interviews Proactive Investors Stocktube Published on May 24, 2019 Victoria Oil & Gas PLC’s (LON:VOG) Ahmet Dik recaps on 2018 following the release of the company’s results as well as expectations for the year ahead. In March this year VOG made significant changes to its management team and raised £13.5mln of new equity. Dik says the company’s getting back on track with ENEO now consistently taking more than 5.5mln cubic feet of gas per day – in the first quarter of 2019 the average group production rate was up 127% to 10.10mln cubic feet per day. [link]
Totally_Wired
24 May 2019
RNS-Historic Chief Executive Officer’s Review of Operations 2018 in Overview Grid Power Customer, ENEO ceasing consumption Resulting year of consolidation and cost reduction Customer diversification strategy Non-essential capital projects put on hold to preserve cash 8 additional customers consuming gas during the year Key Statistics/Events 62% decrease in annual gas sold Gross 1,410 mmscf /Net 804 mmscf (2017: Gross 3,684 mmscf /Net 2,163 mmscf) 66% decrease average daily gas production 3.75mmscfd (YE 2017: 10.98mmscfd) La-108 wireline cutting Operations Review 2018 was a challenging year with the non-renewal of the Gas Sales Agreement with Eneo Cameroon S.A (“ENEOâ€) in January forcing a change in plans. Management responded rapidly to readjust the Company and its costs to do all that it could to remain a going concern through 2018. A number of positive things have come out of the situation including management’s focus being shifted to increase the diversification of customers and its revenue base for the Company by seeking higher value for its gas from industrial power customers. The focus on industrial power customers has generated a lot of interest and GDC has secured a number of signed gas sales agreements. Alongside seeking higher value gas and additional revenue, given the reduced revenues for 2018, cost cutting became a major focus for GDC and the Company. This was achieved successfully and is more likely to see a larger impact in the financials for 2019. I am pleased to report a reduction of operating costs by 24% year on year. With ENEO resuming gas consumption, the company anticipates much better results in 2019. I want to thank shareholders for their patience and support throughout 2018. Further detail on some of the specific topics are noted below. More via link below: [link]
Totally_Wired
24 May 2019
RNS-Historic Preliminary Results for the year ended 31 December 2018 (Continued) Chairman’s Letter Dear Shareholders, This is my first Letter to the Shareholders as Executive Chairman. I will begin by reiterating that the recent changes in significant shareholders and the Board, along with the realignment of management, mark a “a positive, new beginning for Victoria Oil & Gas Plc (“VOGâ€)â€. Let me be more precise as we look back at the past year’s achievements, challenges and mistakes, and look forward to how we can make VOG into a sustainable growth story in Cameroon and potentially other parts of Africa. What first drew my interest to VOG was the business model and its applicability to the rest of Africa and to developing economies globally. The supply of energy in Africa is some of the most expensive and unreliable in the world. Although many countries have seasonal hydro and dirty coal power plants, most are chronically short of power and rely on expensive diesel fuels to help power their communities and businesses between blackouts and brownouts. There is an abundance of stranded gas deposits throughout Africa. While many may criticise the environmental impact of natural gas and its exploitation, its usage is cleaner than the burning of coal or oil, emitting far less carbon dioxide. VOG is one of a handful of companies that has been able to successfully explore, develop and commercialise gas in an environmentally friendly manner, resulting in a reliable, economic power supply and blue skies in Douala. The development and implementation of the VOG business model in Cameroon through its wholly owned subsidiary Gaz du Cameroun S.A. (“GDCâ€) was commendable, and credit has to be given to those who successfully implemented the strategy and built the company. The story of VOG is not of your typical AIM natural resources company: it has successfully explored for and commercialised gas, has financed and constructed a processing facility and 50 kms of pipeline to provide gas to clients, and is a fully operational business in Africa. That statement in itself is exceptional, and I have reminded many of you of the unique story of VOG. The challenge has been and continues to be making the model sustainable. Historical mistakes at VOG have accentuated this challenge, and the impact on VOG’s share price has been considerable. Let me highlight the larger issues and later in this letter provide you with an explanation of how we will address each of these issues: Single Asset Risk: The Logbaba Project is the only operating field in our Company. As the gas from each well at Logbaba depletes, to maintain resources and reserves we have to drill new wells periodically. Drilling for gas in the Douala region is deep, the geology is challenging and the costs per well have proven to be high. Technical problems during our last drilling programme only served to highlight the risk. Customer Concentration: The Company had 39 customers at the end of 2018; however, one, ENEO Cameroon S.A. (“ENEOâ€), accounted for the majority of total revenue in the three years during which it consumed gas. Inability to Manage Operating Margins: The Cameroon Holdings Limited (“CHLâ€) royalty structure attached to Logbaba is more of a revenue sharing arrangement, not netting out costs of production and has paid out 15% of all revenue produced at Logbaba to third parties. The operating expenses in both London and Douala have scope for further reductions, which along with ENEO’s postponement of the renewal of its contract in 2018, have made the operational results of VOG less than stable. Not Separating Logbaba into Upstream and Downstream Businesses: The Government of Cameroon has historically requested the separation of our business to comply with the country’s Petroleum and Gas Codes. This is a major task and management is working with Société Nationale Hydrocarbures (“SNHâ€) to achieve this. Achieving compliance in this regard will deliver clarity on the downstream fiscal arrangements in Cameroon. Establish Strategic Identity: VOG started off as an oil exploration company in Russia. Over the years it ventured into Kazakhstan and other countries. After it successfully developed the Logbaba project in Cameroon, VOG called itself an oil and gas exploration company when in fact it is both a successful upstream gas and a gas utility company. The vision of how to grow VOG outside of Logbaba and Cameroon, particularly after the setbacks of 2018, is a work in progress by both the new Board and management. None of these matters have proven fatal. Thanks to you our shareholders, who have believed in our company’s business model and have supported us, we have a chance to immediately address and remedy them. The new injection of capital and realignment of the Board and management completed on 3 April 2019 allows us to take decisive actions to develop VOG into a long-term, profitable and sustainable business. Let me outline how. First, GDC received on 17 December 2018 the Presidential Decree confirming the transfer of the interest in the Matanda Production Sharing Contract (“Matanda PSCâ€) assigned from Glencore, securing GDC’s 75% ownership and operatorship. Matanda is a large block adjacent to Logbaba, which at 1,235km2 (“Matandaâ€), is over 60 times the area of the Logbaba licence with significant prospectivity. Management has commenced planning to meet our obligations under the PSC, including reappraisal of historic seismic completed by Glencore and others and drilling of at least one well by end 2020. At Logbaba, the planning for the remediation work on well La-108 has commenced, specifically the extraction of the perforating gun stuck in the production tubing, the remaining perforation and subsequent well testing. This work is projected to be completed in Q4 2019. Based on the successful completion of well La-108, we will seek to obtain an independent third party reserve and resource report. Simultaneously, management has initiated engineering works to commercially optimise the Logbaba processing facility. The combined field work at Matanda and Logbaba will move VOG away from single asset risk and is expected to significantly increase our reserves and resources and position VOG to not only supply gas to existing industrial and grid power demand, but also to prospective Independent Power Producers (“IPPsâ€) that have expressed interest in developing new, demand intensive power projects in the Douala area. The Government of Cameroon (“Governmentâ€) has stated that it requires additional grid power to meet the growing power demand in the Douala region. Several IPPs have contacted GDC for the purpose of supplying gas for power generation equipment. The Company has and will continue to actively engage with these IPPs to achieve gas sale agreements. On existing and new clients, let me clarify one point and explain our strategy to mitigate our customer concentration risk. First, for the initial contract which ended 31 December 2017, ENEO has paid all of its invoices to GDC. It was clear to us, and power users in Douala throughout 2018, that the Government needed to add more grid power. After months of negotiations between the Government and ENEO, a new 10-year extension of its concession was signed by ENEO on 11 November 2018. Subsequently, ENEO recommenced acquiring gas from GDC on 22 December 2018 based on a binding term sheet executed between the parties, the terms of which we announced to the market. We are now in the process of completing a fully termed gas supply agreement with ENEO. Many of you have voiced doubts on ENEO paying us, particularly as they have yet to pay us for gas consumed in the first quarter of 2019. Let us remember that ENEO only had their concession extended at the end of 2018. They have in the past paid in full for the gas that was supplied to them by GDC. VOG and GDC have a firm expectation that ENEO will honour their contractual commitment and pay their invoices. Second, apart from increased demand from ENEO and prospective demand from IPPs entering the market, we have another 38 paying industrial customers and we are confident that we can secure additional customers, particularly customers using gas for industrial power as we concurrently work to establish additional long-term reserves and production from Logbaba and Matanda. As promised to you in our announcement of the last capital raise, management has been and continues to be focused on substantially cutting operating costs and improving operating margins. The programme commenced in 2018 will continue throughout 2019, reducing headcount, salaries and non-necessary cost items in both London and Douala, while actively working to increase production and revenue, thus enhancing productivity. As of the writing of this letter, management has successfully extinguished the major trade payables relating to our last drilling programme, with the exception of Weatherford Services and Rental Limited (“Weatherfordâ€), with whom we have a recently reached agreement in principle to settle their outstanding debt. This settlement brings all GDC creditors to within agreed trading terms. VOG today is in a much improved financial and operational position. Q1 2019 results showed a strong set of production figures and we look to emulate and better those figures in the remaining quarters of 2019. Our goal is to make VOG profitable for full year 2019 and in the years to come. To assist in meeting this objective, as noted in our Q1 2019 operations update, the VOG Board has taken steps to review the CHL royalty and has suspended payments until such review is completed. The validity of this suspension is disputed by CHL. The newly constituted VOG Board has further agreed that: We cannot work under the historical assumption or expectation that the insurance claim relating the La-108 well incident will be paid. The insurance claim has been declined by the insurer based on their opinion that there was insufficient evidence of an underground blow-out as defined in the insurance policy. Expert technical advisors to the Company have produced information contrary to what the insurer has put forward and the Board proposes to pursue the claim through litigation in Cameroon; and All costs relating to non-core assets, namely the West Medvezhye project in Russia, will be reduced solely to maintain the licenses and work towards achieving a sale or exit. A new realistic, focused sales process will be commenced and concluded as soon as practicable. The Company is in ongoing negotiations with SNH regarding the mechanism for splitting the Logbaba activities into the upstream and downstream components to determine, amongst other items: the potential participation of SNH in the downstream activities; the allocation of assets, liabilities, revenues and costs; the associated transfer pricing mechanisms; and the net settlement required by SNH to take ownership of their entitlement. In terms of Strategy, we first have to get VOG right in Cameroon. We believe that the Government, ENEO, prospective IPPs, and industrial clients will establish for us the natural ceiling of the gas market in Cameroon. GDC is a gas production and gas utility company. As I stated earlier, all other assets that do not fit this strategy will be disposed. VOG has built a company in Cameroon that is recognised as an outstanding entrepreneurial example of creating a cash generating business from stranded gas deposits. It is a model that under the right conditions can be replicated across Africa’s many stranded gas deposits. The Board will explore strategic opportunities, development of profitable downstream operations, and farm-ins to other potential blocks in Cameroon and other parts of Africa. While we are restructuring our finances and refocusing our operations and strategy, we will look to strengthen our technical abilities and management. The Company has restructured and strengthened our Board, with the appointment of two Independent Non-Executive Directors: John Knight, appointed Senior Independent Director, and John Daniel, both bringing with them a wealth of experience and expertise to VOG. Apart from the Audit Committee, now led by John Knight, and the Remuneration Committee under the continued leadership of John Bryant, a new Technical Committee has been established under the oversight of John Daniel, which will assist management in the planning of all future exploration and field development. The changes implemented at VOG on 3 April 2019 and the steps taken since the end of 2018 are meant to stabilize and grow the company and restore investor confidence in VOG. We are confident that we have identified all the substantive issues that need to be tackled by the Board and will work methodically to resolve each of them. This process will take time and I will make a personal commitment to you our shareholders that we will remain transparent in our reporting as we progress. In our opinion VOG’s share price is massively undervalued. We understand that to rebuild the trust of investors and the value of the company we will have to not only clear operational milestones in Cameroon, but successfully execute a strategic plan for growing the company outside of Cameroon in the long term. We thank our shareholders for their continued support and patience. Thanks are also given to the management and employees for their continued dedication, our independent Non-Executive Directors for their ongoing guidance, and our partners; RSM Productions Corporation (“RSMâ€), AFEX Global Ltd (“AFEXâ€) and SNH. Roger Kennedy Executive Chairman 23 May 2019 [link]
Totally_Wired
24 May 2019
RNS-Historic Preliminary Results for the year ended 31 December 2018 24 May 2019 The Company is pleased to announce the financial information for the year ended 31 December 2018. Year in Review Grid Power customer, ENEO, ceased consumption in January 2018 62% decrease in annual gas sold - Gross 1,410 mmscf /Net 804 mmscf (2017: Gross 3,684 mmscf /Net 2,163 mmscf) 66% decrease in average daily gas production 3.75mmscfd (2017: 10.98mmscfd) Attributable revenue of $10.8 million (2017: 23.5 million), EBITDA a loss of $0.53 million, (2017: $4.59 million), Loss before tax $8.3 million, (2017: $10.7 million) Cost cutting programme commenced - 24% reduction year-on-year 8 additional customers consuming gas with 39 customers at year end On 21 December 2018, ENEO entered into a three-year binding term sheet with GDC for gas to power supply to 30MW Logbaba Power Station peak delivery of 6.1mmscfd on an 80% minimum Take or Pay basis - a minimum gas supply of 4.88mmscfd initial gas sale price of $6.75/MMBtu to increase over the three-year term of the agreement by $0.10/MMBtu annually Post period-end Highlights Board strengthened: Roger Kennedy appointed Executive Chairman following the retirement of Kevin Foo John Knight and John Daniel appointed Independent Non-Executive Directors $17.7 million (gross) raised through the issuance of 104,357,488 new Ordinary Shares at 13 pence per share Board reviewing CHL Logbaba royalty and has suspended payments until review is completed Operating cost reduction programme continued to improve operating margins Q1 2019 average gas production rate increased by 127% during the period to 10.10mmscfd (Q4 2018: 4.45mmscfd) ENEO gas consumption consistently over 5.5mmscfd during the Quarter having recommenced on 22 December 2018 [link]
