Victoria Oil & Gas
A flash blog this morning as I have back to back meetings with a great set of industry leaders, more of that in due course. I couldnt let the VOG announcement go without a mention as it is of profound importance though.
Today’s news from the company says that the La-107 well has found another 23m of wet gas sand in the lower Logbaba formation making a total of 58m. This is excellent news on a number of fronts, the well will be a producer by the end of September and the additional reserves mean that GDC can conclude long term contracts with high usage customers. The demand for gas in Douala way exceeds what GDC can supply so this extra production is enormously profitable and adds significant value to VOG.
I remain convinced that the company is hugely undervalued and that the next few months will show why they are such a rare beast, a virtual monopoly producer with a market that is growing and remains immensely important, the outlook for VOG is now truly mind boggling and investors should appreciate how much this adds to the value of the business.