It’s been a long hard road for holders of Victoria oil and Gas. The news finally came that the much awaited Exploitation Licence had finally been awarded by the President of the Republic of Cameroon for the Logbaba gas and gas condensate field. (As foretold here) It was never in doubt. Time was the key to unlocking the huge potential of Logbaba and make no mistake Victoria oil and gas are on a winner here. The exploitation rights cover the entire 20 sq km development area applied for by VOG and extend for 25 years with an option to add a further 10 years.
News will shortly begin to gather pace and when it does this sp should begin to surge as the significance of this agreement begins to sink in. Logbaba has been awaiting the news and it is my understanding that ALL equipment is on site. The company are moving very quickly now. First production and sales will greatly enhance this sp. The Logbaba site has been ready to go for the last 3 months. All the design and engineering was completed early this year. Remember that VOG “operations at West Medvezhye, Russia are gathering momentum” and they “have extended the option to acquire Falcon Petroleum Limited which has assets in Mali and Ethiopia. In the meantime, the Company has also commissioned a third-party evaluation to determine the prospectivity of the assets and a valuation range. This work is now complete and VOG is currently negotiating with the Directors of Falcon. We expect to provide a further update to the market shortly.”
First gas sales from Logbaba should be announced in about 3/4 months certainly before the end of Q4 this should transform the company in to a cash generative machine. Cameroon domestic gas sales will transform VOG. Another bonus/pointer is the appearance of other big players such as Rio Tinto etc. Once the big companys focus/target a country then you can take it as read that the economy will spike.
The sp at the moment is certainly well below where it should be. There is a school of thought that VOG could double or triple from where the sp currently sits. It will only take a spark here to set this sp off upwards! The drag at the moment is investor fatigue. Investors have moved on and away but as sure as night follows day they will return as first production comes on stream!
Hold your stock! 10p minimum by year-end looks likely as the VOG coffers begin to fill up with cash!
Research and watchlist!
PS**** Forgot to add that these could literally hit 20p depending on how much cash begins to accrue from gas sales****