Victoria Oil & Gas Plc. announce results for year ended 31 May 2013
Chairman’s Statement & Review of Operations
I wrote to you on 10 October providing an update on many operational matters and whilst I may be repeating myself here, the update included some key messages that I believe are important enough to state again.
This year has been a challenging one for Victoria and its shareholders. Like you, I am concerned about the low share price, which I believe grossly undervalues our business and does not reflect the Company’s achievements to date. In less than four years, our Company, backed only by its shareholders, has succeeded in drilling two complex wells, installing gas processing facilities for 20mmscf/d, laying 22km of pipeline and is selling gas and collecting revenue.
I would like to take this opportunity to remind you again of the fundamentals of the Company and the reasons why I believe that your ongoing support is justified:
•Our objective is to build our business using the cash flow from our flagship Logbaba gas and condensate field in Cameroon to fund further expansion and acquisitions in Africa;
•Our Cameroon subsidiary, Rodeo Development Limited (“RDL”), a producing natural gas and energy company, is generating revenue and is expected to be cash generative at an operating level by November 2013. We are no longer just an exploration company;
•Logbaba is estimated to hold sufficient proven and probable reserves to supply an average 20mmscf/d to industrial customers until 2043;
•We have been supplying gas on a continuous basis since July 2012 without interruption, demonstrating a reliable gas distribution network and we currently have 19 customers on line;
•We are in the position of not being supply constrained, and as RDL is the sole onshore gas producer in Cameroon, we have no competition in country;
•We have the full support of the Government of Cameroon at all levels and are working actively with our partners and our customers to meet the demand from Cameroon industry for additional energy and power. Ninety five percent of our total workforce of 128 people is Cameroonian; and
•We are at the forefront of an energy revolution, not just in Cameroon, but in the whole Central African region. Customers now have the choice to switch to a lower-cost and cleaner source of fuel for the first time. Being first mover is hard and we still have much to do before the gas market in Cameroon matures, but we are in the unique position of owning and operating not only the supply, but also the transmission network.
Read more: Victoria Oil & Gas Plc.
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