Victoria Oil & Gas PLC Q2 2022 Operational & Corporate Update (3739T)

TIDMVOG

RNS Number : 3739T

Victoria Oil & Gas PLC

22 July 2022

22 July 2022

Victoria Oil & Gas Plc

("VOG" or the "Company")

Q2 2022 Operational & Corporate Update

Victoria Oil & Gas Plc, whose wholly owned subsidiary, Gaz du Cameroun S.A. ("GDC"), is the onshore gas producer and distributor with operations located in the port city of Douala, Cameroon, provides shareholders with a brief operations update for the second quarter of 2022 and an update on corporate matters.

OPERATIONS SUMMARY

-- Sales : Average daily gross gas sales rate for the quarter was 5.6 MMscf/d (up 2% on Q1 22: 5.5 MMscf/d), and a gross volume of 4,243 bbls (Q1 22: 4,691 bbls) condensate was shipped to customers.

-- Matanda : Rig contract negotiations continue and the mobilisation of a rig to Douala is expected to be complete by end July, this being at the owner's own cost and risk. Site and access preparations will be somewhat hindered by the rainy season at this time of the year.

CORPORATE SUMMARY

ICC Award: As announced on 4 April 2022, along with a Partial Final Award, the Tribunal directed the parties (GDC and RSM) to confer regarding the proposed procedure for resolution of costs and attorney's fees ("Costs") with a target date for resolution by 30 June 2022.

The Arbitration Panel and the International Chamber of Commerce ("ICC") are still evaluating a number of issues connected to the proceeding, including Costs, and consequently the ICC has extended the time limit for rendering the final award until 31 December 2022. We continue settlement discussions with RSM with a view towards achieving resolution of these matters and a commercially realistic settlement in a more timely manner and in lieu of the Arbitration Panel and ICC resolving these issues on behalf of the parties.

LOGBABA UPDATE

Quarterly Production

GDC continues to safely produce and sell natural gas to a variety of customers in the Douala area. Quarterly gross and net gas sales and condensate shipments at Logbaba are as follows (amounts shown in bold represent net gas and condensate sales attributable to GDC (57%)):

 
                           Q2 2022          Q1 2022 
 Gas sales (MMscf) 
---------------------  ------  ------  ------  ------ 
 Thermal                  278     488     266     466 
                       ------  ------  ------  ------ 
 Industrial power          12      22      17      31 
                       ------  ------  ------  ------ 
 Total (MMscf)            290     510     283     497 
                       ------  ------  ------  ------ 
 Daily average gross 
  gas sales rate 
  (MMscf/d)                  5.6              5.5 
                       --------------  ---------------- 
 Condensate shipped 
  (bbls)                2,419   4,243   2,674   4,691 
                       ------  ------  ------  ------ 
 

Logbaba Field Performance

There were some very high daily sales in the quarter, with intra-day, instantaneous peaks occasionally reaching approximately 8.0 MMscf/d. The Logbaba field has now produced a cumulative of approximately 21.8 Bcf of natural gas, and GDC continues to use two of the three wells at any time.

Customers

GDC's online customer count remained around 30 for the period.

MATANDA UPDATE

The Company continues to market the Matanda Farm-Out opportunity and absent success with that process, the Company is progressing negotiations in relation to alternative sources of funding.

The Company has selected a 1,700 HP rig, which is moving to contract negotiation stage and, as previously disclosed, the rig owner has chosen to relocate the rig to Doula at his own risk and cost. In the event, that a contract is executed, there would likely be a mobilisation charge to move the truck-mounted rig from Douala to the Marula wellsite.

May heralded the start of the rainy season which of course makes groundworks more challenging.

WEST MED UPDATE

The process to find a buyer for SGI continues. International sanctions continue to hinder funds transfers to Russia and limit the counterparties with which the Company can have discussions.

Roy Kelly, Chief Executive of Victoria Oil & Gas, commented :

"Demonstrating that it really is business as usual in Cameroon, we are very pleased to report that GDC achieved a third consecutive quarter of gas sales growth, with this growth being largely organic.

Following the Arbitral award against GDC at the start of the quarter, we continue to work with RSM to seek a post-award commercial settlement."

   For further information, please visit  www.victoriaoilandgas.com    or contact: 

Victoria Oil & Gas Plc

Roy Kelly/Rob Collins Tel: [phone]

Strand Hanson Limited (NOMAD)

Rory Murphy/James Dance Tel: [phone]

Shore Capital Stockbrokers Limited (Broker)

Mark Percy/Toby Gibbs Tel: [phone]

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July 22, 2022 02:00 ET (06:00 GMT)