Victoria Oil & Gas achieves record monthly production in January

3rd Feb 2017 10:35

(ShareCast News) - Cameroonian energy utility Victoria Oil & Gas reported that it had achieved record monthly production in January and that a new pipeline to Bonaberi came onstream during the final quarter of 2016.After the extension of the Bonaberi pipeline, which provides gas to Doula, the largest city in Cameroon and the capital of the Littoral region, the company gained three new thermal customers for its gas during December.The company's subsidiary, Gaz du Cameroun which operates and owns a 60% stake in the onshore Logbaba gas project in Cameroon saw an increase in average gas production to 7.64m melium standard cubic feet per day (mscf/d) in the final quarter of 2016, compared to last year.Gas sales from Logbaba rose 4.5% to 654m mscf for the quarter, while there was a 24% increase in gas sales of 3.56m mscf for the year.Chief executive Ahmet Dik said: "The Bonaberi pipeline extension provides gas to the western industrial area of Douala, which is fast becoming a new hub for future developments looking to access Douala's port, power and road networks. We have established ourselves as a vital part of the energy infrastructure for the city and the region."I am particularly pleased that year-on-year gas sales for 2016 has increased by 24% and a monthly production record has been set this January. Our drilling programme has progressed well and we are reaching an exciting phase as the wells descend into the Logbaba Formation."The Logbaba drilling programme progressed during the year with a rig spudded at both twin and step out wells, including at wells La-107 at 1.61 m and well La-108 at 1.17m.Revenue for the quarter fell slightly to $4.6m from $4.7m, and the company had $15.8m cash balance at the end of last year, up from $14.1m. It had $1.3m net cash.The company has undrawn credit lines of about $16m.Shares in Victoria Oil & Gas were down 5.37% to 38.09p at 1041 GMT.