TIDMVOG
RNS Number : 0731K
Victoria Oil & Gas PLC
17 April 2020
An amendment has been made to the 'Q1 2020 Operational Update'
announcement released earlier today under RNS number 0043K.
The SUMMARY section of RNS number 0043K incorrectly stated that
"...1,656 bbls of condensate was produced safely and sold to
industrial customers..." This has been corrected to state "...1,343
bbls of condensate..."
All other details remain the same. The full amended text is
shown below.
17 April 2020
Victoria Oil & Gas Plc
("VOG" or the "Company")
Q1 2020 Operational Update
Victoria Oil & Gas Plc, whose wholly owned subsidiary, Gaz
du Cameroun S.A. ("GDC"), the onshore gas producer and distributor
with operations located in the port city of Douala, Cameroon, is
pleased to provide shareholders an operations update of the
Company. The Company intends to revert to the regular provision of
quarterly updates to shareholders.
SUMMARY
-- New Chief Executive Officer, Non-Executive Director announced & now on board
-- A daily average of 5.1 mmscf/d of gas plus 1,343 bbls of
condensate was produced safely and sold to industrial customers,
resulting in net revenue to GDC of US$5.3 million for Q1 2020
(unaudited)
-- Grid power customer ENEO has arranged payment of four
invoices amounting to a net total of US$2.9 million to GDC via
"promissory notes" in the quarter (as has been done before)
-- We continue to pursue full and regular payments from ENEO
-- A number of expatriate crew were evacuated from Cameroon due
to the COVID-19 lockdown and we await the return of the expatriate
members of the rig crew required to continue the La-108 remediation
work
-- We are proceeding with the facilities enhancement project to
lower the surface pressure and thus reduce the backpressure on the
reservoir, adding deliverability and reserves
RESPONSE TO COVID-19
The health, safety & wellbeing of our employees are our top
priorities. In response to COVID-19, we are complying with all the
instructions and guidance issued by the authorities in each of the
jurisdictions in which we operate.
The situation in Cameroon, as with many countries at present, is
rapidly evolving. To date GDC is still able to operate the wells,
processing plant and pipeline without disruption, however this
situation is constantly monitored. The impact on our gas sales
directly attributable to COVID-19 to date is not material, however
we remain highly vigilant. GDC has an emergency response plan to
protect its staff and the operations in the event of a required
closure should the Government enforce further restrictive
containment measures. Certain expatriate rig crew were evacuated
from Cameroon in light of the COVID-19 situation, which has
affected the La-108 remediation work as set out below.
The London headquarters staff of the Company have been
instructed and continue to work from home in line with U.K.
Government instructions. We will advise shareholders as events
unfold.
NEW CEO & BOARD MEMBER
We are pleased to announce that Roy Kelly commenced as the new
CEO of the Company on 23 March 2020.
We also welcomed Rob Collins to the Board this past quarter as a
Non-Executive Director and Head of the Audit Committee.
A complete strategic and operational review was commenced,
including the decision to provide our shareholders and the market
with regular operational updates on at least a quarterly basis.
LOGBABA UPDATE
Grid Power - ENEO
On 14 September 2019, Altaaqa, the generator supplier to ENEO,
suspended operations at ENEO's Logbaba site due to non-payment of
invoices by ENEO. Consequently, GDC has not provided gas to ENEO
since that date, but has continued to invoice ENEO based on
Take-or-Pay provisions as per the binding term sheet. The
suspension at ENEO's Logbaba site continues but VOG is aware that
talks between Altaaqa and ENEO are occurring and the company is
optimistic of a resolution, although no timing can be
predicted.
ENEO has arranged payment of invoices in full for May, June,
July and August 2019, totalling US$ 5.1 million. To make this
payment, ENEO provided GDC in March with four promissory notes,
which have been used as collateral for a bridging facility with
BGFIBank Cameroon ("BGFI"). BGFI is the banker to both GDC and ENEO
in Cameroon. The promissory notes mature in monthly intervals from
May to August 2020, and as each promissory note matures the
facility will be settled. Until the notes are settled, the
outstanding facility will be reflected as current borrowings.
This is not the first time ENEO has settled invoices on this
basis. In 2017 ENEO provided 10 promissory notes which were cashed
with BGFI against a bridging facility and ENEO honoured each
note.
The gross amount of receivables outstanding from ENEO to 31
March 2020 is $US9.1 million (US$5.2 million net to GDC ). The
promissory notes are already offset on this ENEO balance as at 31
March 2020, and the gross value of promissory notes received from
ENEO is US$5.1 million (US$2.9 million net to GDC) as at 31 March
2020.
While this invoice settlement structure is not ideal, ENEO is
paying its invoices, albeit in arrears, and continues to
acknowledge their contractual commitments under the Gas Supply
Agreement. GDC is actively working with the Government of Cameroon
and ENEO to bring their past and future monthly payments under
contracted terms (14 days from receipt of invoice). GDC expects to
receive full payment of all outstanding amounts in due course, to
conclude the fully termed agreement with ENEO and to secure the
agreed payment guarantees.
Quarterly Production
GDC continues to safely produce and sell natural gas to over 30
customers in the Douala area, most of whom were previously burning
diesel or fuel oil. Quarterly gross and net gas and condensate
sales at Logbaba are as follows (amounts in bold are gas and
condensate sales attributable to GDC (57%)):
Q1 2020 Q4 2019
Gas sales (mmscf)
------------ --------------
Thermal 250 438 231 405
---- ------ ------ ------
Industrial power 15 26 14 24
---- ------ ------ ------
Grid power 0 0 0 0
---- ------ ------ ------
Total (mmscf) 265 464 245 429
---- ------ ------ ------
Daily average gross
gas sales rate (mmscf/d) 5.1 4.7
------------ --------------
Condensate sold (bbls) 766 1,343 5,548 9,733
---- ------ ------ ------
La-108 Remediation
The remediation work on well La-108 was expected to commence
during April, upon the arrival of the additional equipment which
was sourced to perform the project. The equipment is now on site,
however, due to safety concerns related to measures taken
in-country regarding COVID-19, the snubbing rig contractor has
evacuated their personnel until further notice. GDC is in
discussions with the contractor to agree when their team can return
to site. Until then, work on this project is delayed until further
notice.
Facilities Enhancement
GDC will proceed with the enhancements to the Logbaba processing
plant. This project will reduce the required wellhead pressures for
continued operability of the processing plant at lower pressures.
These works, with a gross estimated cost of $1.5 million, will be
completed during 2020 subject to project execution.
AGM AND ANNUAL REPORT
In light of current COVID-19 circumstances, the Company may face
challenges having its Annual Report prepared in time, and further
may be prohibited from holding an in-person AGM as is required. The
Company is presently exploring the option of a virtual AGM. We will
advise shareholders as events unfold.
Roy Kelly, Chief Executive of the Company, commented :
"Whilst this quarter saw the spread of COVID-19 and some
inevitable impact on VOG, we are pleased to report a solid
performance from our operating divisions, including continued
revenue from the Logbaba project at previously reported levels, and
ongoing cost reduction in the SGI project in Russia. Looking
forward, we have two capital projects on the Logbaba project that
will hopefully take place this year and potentially add
deliverability & reserves."
For further information, please visit www.victoriaoilandgas.com
or contact:
Victoria Oil & Gas Plc
Roy Kelly Tel: +44 (0) 20 7921 8820
Kate Baldwin
Strand Hanson Limited (Nominated and Financial Adviser)
Rory Murphy / James Dance / Jack Botros Tel: +44 (0) 20 7409 3494
Shore Capital Stockbrokers Limited (Broker)
Mark Percy / Toby Gibbs (corporate advisory) Tel: +44 (0) 20 7408 4090
Jerry Keen (corporate broking)
Camarco (Financial PR)
Billy Clegg Tel: +44 (0) 20 3757 4983
Nick Hennis Tel: +44 (0) 20 3781 8330
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDZZGMDZNVGGZM
(END) Dow Jones Newswires
April 17, 2020 08:45 ET (12:45 GMT)
Grafico Azioni Victoria Oil & Gas (LSE:VOG)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Victoria Oil & Gas (LSE:VOG)
Storico
Da Apr 2023 a Apr 2024
