VOG Still Without Key Cameroon Client
Victoria Oil & Gas (VOG), the AIM-listed gas producer in Cameroon, said September 28 it has still not managed to persuade local utility/generator Eneo to resume purchasing gas from it.
“Non-renewal [in early 2018] of the Eneo gas sales agreement, especially during the peak dry season, has had a significant impact on the revenues and results of the company during the [1H] reporting period,” it said September 28, adding that hydro-electric units are unable to meet Cameroon’s power demand. VOG's 1H2018 total gas sales were 650mn ft3, compared with 1H2017 sales of 2.35bn ft3 – because 1H sales for grid-connected power generation fell to zero (from 1H2017: 1.65bn ft3). Its 1H2018 upstream gas production slumped to 3.4mn ft3/d, compared with 14.6mn ft3/d in 1H2017.
VOG's net loss however narrowed to $3.3mn, from a 1H17 net loss of $4.5mn, due to fewer expenses. It said three smaller industrial power generators were connected to its gas distribution system in 1H2018 and that it expects more to sign up by end-2018 and “remains confident that a resolution with Eneo will be agreed in the near term.” It is also continuing to pursuing its strategy of marketing gas as CNG with a Turkish partner.