29th Feb 2016 10:36
LONDON (Alliance News) - Victoria Oil & Gas PLC Monday said it is on track to spud the first of two new wells by mid 2016, as it reported a swing to a pretax profit for its first half.
For the half year to end-November Victoria reported a swing to a pretax profit of USD215,000, from a pretax loss of USD51.7 million the year before primarily as a result of a significant impairment of exploration and evaluation assets in the previous year.
Revenue rose to USD18.9 million from USD11.6 million the year before.
The company recently acquired a 75% interest in the Matanda Block PSC in Cameroon, which it said is "highly prospective" for significant natural gas and gas condensate resources.
Victoria Oil & Gas is planning a two-well drilling programme to expand its gas reserves, with the aim of increasing its gas supply to customers by 30% to over 2015 levels.
"Our company continues to deliver increased production and strong financial results. This confirms that our fully integrated gas utility business in Cameroon works well and has helped insulate us from low oil prices and extremely challenging markets. We intend to build on this foundation to increase production and cash flow in Cameroon and elsewhere in Africa," said Executive Chairman Kevin Foo in a statement.
Shares in Victoria Oil & Gas were down 5.8% at 47.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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