VOG Plans Share Issue for Cameroon Expansion
AIM-listed gas producer Victoria Oil & Gas (VOG) said October 25 it is seeking to raise between $20mn and $26mn to expand its reach in Cameroon.
It proposes to do this through a new share issue of at least £0.57 ($0.75)/share, representing a discount of 12% to its closing price October 24. It also proposes to raise up to $3mn by way of an open offer to qualifying shareholders.
Both plans need approval at a shareholders meeting, the details of which are expected to be posted late October 26, it said.
Having established a natural gas supply business in Cameroon's port city of Douala, VOG said it believes that the net proceeds of the fundraising, together with additional capital intended to be sourced from local banks, will allow it to “accelerate growth in gas production to meet the opportunity that exists in the Cameroon power sector.” This would enable it to: target the roughly 1.7 GW power deficiency in Douala with gas-to- power solutions; deliver 100mn ft3/d by end-2021; drill an additional well (La-109) at its Logbaba project; and raise the Logbaba gas processing plant capacity to 70mn ft3/d.
It also said, subject to government approvals, it hopes to develop its Matanda and Bomono gas projects in Cameroon, and extend its pipeline reach around the port city of Douala to Bomono and other specific customers.
Mark Smedley