Victoria Oil & Gas Share Discussion Threads

[highasakite] 26/5/2017 11:57

"In 2016, GDC’s gas distribution network grew 15km into the expanding Bonaberi industrial area of the city. Early this year, we reached the 50km milestone of pipe laid, an outstanding credit to the Company and in particular our 100% Cameroonian pipeline team. Additional thermal customers along this extension were commissioned pre and post year-end. Douala’s economy continues to grow and our gas network contributes to the attractiveness of the port city to new industrial businesses. We are witnessing this first-hand through our sales enquiries in GDC.


The uninterrupted gas supply to ENEO’s two power stations over the course of the first two-year contract has been a successful milestone for GDC. The renewal negotiations are ongoing and ENEO continues to consume GDC gas at normal consumption rates for this time of year given the demand for power in Douala. Once results for the drilling programme are known, GDC will then be in a position to commit to negotiations that have been ongoing for some time with additional larger gas-to-power projects.


What we continue to achieve in Cameroon is exceptional. "

[highasakite] 26/5/2017 11:55

"The Logbaba drilling programme, which experienced a delayed start, is progressing, despite some challenges. These are complex, high temperature, high pressure wells. However, we are very excited that over 125m of gross gas bearing sands have been encountered in La–108. This is significantly more than the 85m of gross pay found in La-105 in 2010. When the wells are completed we expect to be transferring a portion of our Probable Reserves into the 1P category. The completion of the drilling programme will also trigger our processing plant expansion project to double the plant capacity to 40mmscf/d. This will enable us to supply more gas and take advantage of some of the bigger and longer term supply opportunities in the region."

[clunes100] 26/5/2017 11:54

The right down for tax losses makes perfect sense and a point well made.

[highasakite] 26/5/2017 11:53

"We will require greater gas reserves and a growing demand for that gas. GDC is very well positioned, as the only onshore gas supplier in Cameroon, to meet this demand, which we believe is greater than 150mmscf/d of natural gas in the Douala region alone. Whilst our average daily production in 2016 was about 10mmscf/d, we are aiming to capture 100mmscf/d of this market by 2021. This production cannot be met by the Logbaba Field alone, so we have long planned to have access, one way or the other, to gas resources on both the Matanda and Bomono Blocks as they were explored, appraised and developed by their previous owners.


We estimate that over $350 million has been spent on Matanda and Bomono since 2010, three wells have been drilled (all tested gas), and 650 line-km of 2D seismic and 203km2 of 3D seismic has been acquired, therefore de-risking the projects substantially and to VOG’s advantage.


As events have unfolded, we are now in a very strong position, with majority stakes in three contiguous blocks, Logbaba, Matanda and Bomono (subject to approvals), and control of over 3,500km2 of prime gas exploration and development territory, covering most of the onshore Douala Basin. These assignments, which cost the Company very little, will be seen in the future as “game changers” that allowed VOG to expand its business and maintain its position as a leading energy provider in Cameroon. I believe that the prospective resources in these blocks, coupled with the outstanding Logbaba production facilities and our existing gas distribution network, underpins our potential to achieve the 100mmscf/d production target. We are truly becoming a fully integrated gas company.


Our subsurface technical team is in the process of assessing all the data across the three blocks and I am very excited with the potential of the onshore prospects, which have never been assessed as a “whole” before. Work is currently underway to identify drillable targets in the Matanda and Bomono Blocks by the end of 2017, with a view to drilling wells in 2018-2019.


Among the prospects that have been identified internally is one with un-risked prospective resources of approximately 1tcf of gas in the onshore Matanda Cretaceous Logbaba Formation in a large structure near the Missellele-1 well. This structure is only some 8.7km from the current western leg of our pipeline on the Bonaberi side. There is still more work to do in identifying and evaluating further prospects on the blocks and I am very confident that as the sub-surface team continues its work more prospects of this quality and size will be identified."

[thinking] 26/5/2017 11:26

New broom sweeps clean in first year all bad news out of the way, looking good imo longer term with a few accepted bumps along the way due to the nature of the business imo

[highasakite] 26/5/2017 11:20

no doom here Mr Hunt.

[deanroberthunt] 26/5/2017 11:15

BW, you should be a politician, you'd put a positive spin on impending doom

[broncowarrior] 26/5/2017 11:10

The write down is actually quite clever as it creates a tax loss for more profitable years going forward. Seen that 100mm scuffs estimate in presentations previously. Heading to levels where I might start building up a proper position again.

[clunes100] 26/5/2017 10:44

High, I did not wish to appear greedy! Given foo's persistence with west med and knack for pulling out rabbits, it would never surprise me if he pulled something off.

[spellbrook] 26/5/2017 10:24

08:05 26 May 2017
“Even at record production levels, we meet less than 10% of local demand as the city's industrial economy grows,” said chief executive Ahmet Dik.



[...]

[highasakite] 26/5/2017 10:14

Clunes

West Med is worth a lot more than "a few million"

[hashertu] 26/5/2017 10:13

I didn't see any surprises in the results.

Is the target of 100mmcfd in five years new information? I don't recall seeing that before.

Negotiations with ENEO have "progressed well". Doesn't look like there is a major stumbling block there.

Special thanks to RSM!!! Let's hope that continues.

West Med. Might yet get something back from this.

[highasakite] 26/5/2017 10:09

'Once results for the drilling programme are known, GDC will then be
in a position to commit to negotiations that have been ongoing for some time
with additional larger gas-to-power projects.'

[baticle] 26/5/2017 10:06

There's still a lot of News to come that we don't have to wait too long for,
Flow results for the new Wells and Power Contract being the big ones.

[clunes100] 26/5/2017 10:02

Dividend now potentially a possibility, it would surprise me if west med suddenly yielded a few million and food said told you so and rewarded shareholders with a bit of bounce.

In the future a steady dividend will propel VOG to a different level of investor appreciation and under pin the so.

[clunes100] 26/5/2017 10:02

Dividend now potentially a possibility, it would surprise me if west med suddenly yielded a few million and food said told you so and rewarded shareholders with a bit of bounce.

In the future a steady dividend will propel VOG to a different level of investor appreciation and under pin the so.

[fatnacker] 26/5/2017 09:59

I added via ig @54p, could only get £50 a point though, huge over reaction.

[highasakite] 26/5/2017 09:41

Tried to buy 50000 at less then 55p this morning and I couldn't.

[highasakite] 26/5/2017 09:34

VOG has come on in leaps and bounds and the investment community have so far appreciated that by doubling the share price so far this year. The headline figures have concerned some this morning but the underlying picture is still very good with huge upside potential in the share price.

[pauliewonder] 26/5/2017 09:30

Could end off being blue today. Think long term there is huge upside here. Depends on newsflow from now, could be short term too.

[highasakite] 26/5/2017 09:29

'Once results for the drilling programme are known, GDC will then be
in a position to commit to negotiations that have been ongoing for some time
with additional larger gas-to-power projects.'

[highasakite] 26/5/2017 09:28

wall to wall buying.

[deanroberthunt] 26/5/2017 09:25

funny

don't panic mr Mainwaring...I think is the advice here...hehe

[hiddendepths] 26/5/2017 09:22

Well I read it all and didn't just react to the headline number. I'm not a holder but it's been on my watchlist since 40p. It's now being dropped from the watchlist - I'll go on losing money in HUR instead!

[deanroberthunt] 26/5/2017 09:21

could be blue :)