24th May 2018 13:25
LONDON (Alliance News) - Victoria Oil & Gas PLC on Thursday reported a drop in production following a power station suspension which also knocked revenue in the first quarter.
For the quarter ended March, daily average gas production from the Logbaba project in Cameroon shrunk to 3.5 million standard cubic feet per day from 14.6 mmscf/d the previous year.
Likewise, gross Logbaba gas sales decreased 71% to 330 mmscf from 1,192 mmscf last year.
As a result, revenue for the quarter came in at USD2.5 million compared to the USD8.1 million posted a year before, due to the temporarily suspension of ENEO Cameroon SA owned Logbaba and Bassa power stations in Douala, Cameroon.
ENEO is a joint venture between UK group Actis and the Cameroon government.
The company was forced to revise its 2018 production targets once again in light of the national electricity generating company suspending two of its power stations.
If Logbaba and Bassa come back online by July, Victoria explained, production targets will stand at 11.3 mmscf/d. If they remain offline, however, this will fall to 7.8 mmscf/d.
"Despite the suspension of the ENEO supply, I believe that the company will actually grow stronger and create a more diverse product base in 2018 and continue to build the outstanding business we have created in Cameroon," said Chief Executive Ahmet Dik.
The stock was trading 13% lower on Thursday at 28.00 pence per share.
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