23rd Jul 2015 07:12
LONDON (Alliance News) - Victoria Oil and Gas PLC Thursday said both gas production and sales more than doubled in the second quarter of 2015 .
The gas utility company with operations in the industrial port city of Douala in Cameroon said average gas production in the second quarter was 12.6 million standard cubic feet per day. That is more than double the 4.5 million cubic feet produced in the first quarter of 2015 and the 2.6 million produced a year earlier.
Gas sales also leapt to 1.12 billion standard cubic feet from only 404.5 million cubic feet in the previous quarter and from 281.1 million cubic feet a year earlier.
Condensate sales followed suit, totalling 13.44 billion standard cubic feet in the second quarter, up from 6.34 billion cubic feet in the previous quarter and from 4.99 billion cubic feet a year earlier.
Total gas and gas condensate sales generated revenue of USD9.8 million in the quarter, up from USD5.1 million in the previous quarter.
The rise in sales and production follows on from the company connecting new customers to the Bassa and Logbaba power stations. At the start of the second quarter, those stations began supplying gas to ENEO Cameroon SA following a deal signed in December. New thermal customers were also connected in the period, including the Dangote cement plant from the deal signed in June.
The gas supplied to the Bassa and Logbaba power stations is provided by Gaz du Cameroun SA, before it is converted into electricity.
In addition, Victoria Oil will "accelerate" its plans to drill a further two wells in Douala due to the "large current and projected demand for gas" in the region. The current schedule estimates the next two wells will be drilled in the second half of 2016 and completed in late 2016.
"We now have the financial strength to pursue the next phase of our growth which is to bring more gas online to meet the massive customer demands. We plan to fund this development programme from existing and projected cash flows and local lines of credit," said Chairman Kevin Foo.
Victoria Oil reported a cash balance of USD14.2 million at the end of the quarter, compared to USD15.6 million at the end of the first quarter.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Victoria