17th Apr 2015 17:18
LONDON (Alliance News) - Victoria Oil & Gas PLC Friday said that gas supply to industrial customers in Cameroon from its Gaz du Cameroun SA subsidiary has risen to 9.4 Million standard cubic feet per day on a seven-day average basis following increased production to feed the Bassa power station.
"Our gas production has doubled since the beginning of the year, and for the first time our peak production has broken the 10 mmscf/d threshold. This is a big achievement for VOG and the continuation of what I expect to be a successful 2015 for the company," Executive Chairman Kevin Foo said in a statement.
The company supplies gas to the Bassa power station under a deal agreed with ENEO Cameroon SA, a company partly owned and operated by the UK-based Actis and Cameroon's state power company.
Gaz du Cameroun, the Victoria Oil & Gas subsidiary, supplies gas to both the Bassa and Logbaba power stations. According to the company, those power stations generate electricity from gas fired electricity generation sets supplied and operated by project partners Altaaqa Global.
"Under the terms signed with ENEO, minimum take or pay elements come on-line guaranteeing fixed levels of revenue for the company, once 20MW of power is made available at Bassa and 50MW of power is made available at both Bassa and Logbaba power stations," Victoria Oil & Gas said.
"A maximum combined power generation of approximately 50MW equates to 10.1 mmscf/d of gas with the minimum take-or-pay terms requiring payment for90% of this during the dry season (January-June), and 30% in the wet season (July-December), at a fixed price of US$9/mmbtu," Victoria Oil & Gas added.
According to Victoria Oil & Gas, take-or-pay obligations have been satisfied at the Bassa Power Station due the the "consistent" generation of 20MW of power.
The completion of the Logbaba power station has now entered its final phase, according to Victoria Oil & Gas.
"The installation is expected to be completed soon and Logbaba will thereafter meet its 30MW supply target (6.06 mmscf/d)," the company said.
Victoria Oil & Gas shares closed flat at 75 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
VOG.L