Victoria Oil & Gas Plc, the integrated natural gas producing utility, announces its unaudited interim results for the six months ended 30 June 2020 and provides an operations update for Q3 2020.
Operational Highlights
- Average daily Logbaba field gross sales rate decreased by 51% to 4.8 mmscf/d (six months to 30 June 2019: 9.9 mmscf/d) due to grid power customer ENEO ceasing consumption
- 881 mmscf of gross gas sold from Logbaba (six months to 30 June 2019: 1,785 mmscf)
- One additional industrial power customer consumed gas during the period
- 13% increase in thermal and industrial customer gas consumption for thermal use compared to H1 19
- Notice served to terminate ENEO gas sales agreement in June 2020
- La-108 equipment mobilised but works put on hold due to COVID 19 restrictions
Financial Highlights
- US$12.6 million Revenue (six months to 30 June 2019: US$10.7 million)
- Adjusted EBITDA loss of US$0.8 million (six months to 30 June 2019: US$3.7 million)
- US$6.1 million cash generated from operating activities prior to movements in working capital (six months to 30 June 2019: US$4.7 million)
- US$12.5 million Net Debt position (at 31 December 2019: US$10.7 million)
Corporate Highlights
- Robert Collins appointed as Non-Executive Director
- Ahmet Dik stepped down as Chief Executive Officer
- Appointment of Roy Kelly as Chief Executive Officer
- Andrew Diamond, Finance Director resigned and working out six month notice period
Subsequent and Q3 20 Highlights
- Daily average gross gas sales rate for Q3 20 of 4.7 mmscf/d (Q2 20: 4.6 mmscf/d) of natural gas plus gross 2,438 bbls (Q2 20: 3,548 bbls) condensate was produced safely and sold to industrial customers, resulting in net revenues of US$3.3 million (unaudited)
- During October 2020 weekday gas sales have occasionally exceeded 5 mmscf/d with a peak at 6.1 mmscf/d. This is mainly the result of a seasonal swing and the reduction of COVID-19 related issues that our customers face. One more thermal and power customer will be tied in shortly
- ENEO contract terminated on 3 July following expiry of 30 day remedy period, and receivables are being rigorously pursued
- Appointment of Rob Collins as Chief Financial Officer on 11 August 2020
- The Company continues discussions with the Cameroon State for the extension of the Matanda license
- The workover crew returned to Cameroon and recommenced the La-108 well remediation in early October. At the time of writing, we have retrieved the fish from the well, and we are cleaning out the wellbore
- The Company is pleased to announce the evolution of its CSR policies and procedures into a revised ESG initiative, to be headed by Kate Baldwin
- Roger Kennedy stepped down from Executive Chairman to Non-Executive Chairman following the General Meeting held on 29 October 2020
