Victoria Oil & Gas

Full Year 2016 figures from VOG which although historic give a good idea as to the significant advances made last year and so far this year.  Figures show net revenue of $32.8m and EBITDA of $13m on record gas sales of 10.2mmscf/d up 24%.  It is useful to know that this is still less than 10% of local demand.  These are good fundamentals despite a $32.7m write off which includes $22.7m on the Logbaba well La-106.

With $27m spent on capital investment on drilling and the further pipeline extension VOG still has $14.4m headroom on its BGFC debt facility.   The revenue is in line with company’s guidance, getting rid of a royalty is good going forward as are the non cash items.  Operationally, drilling continues slowly hoping for no more gas kicks and ENEO are still taking gas so progress is justified.

Chairman Kevin Foo records 2016 as “a great year” with acquisition of extra acreage at Matanda and in 2017 the Bomono deal probably “a game changer” for VOG.   The company are now firmly in control of the Douala Basin and a recent visit showed quite how much potential there is in the City. 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.