Victoria Oil & Gas Sales Agreement Signed. I've taken out the "major part" on the basis its wise for parties to not get carried away.
The Highlights (Copy & Paste):
- · Major gas sales agreement signed with ENEO
- · Gas to be supplied to Logbaba(30MW) and Bassa (20MW) power stations under a two year contract at a fixed price of US$9/mmbtu
- · Gas consumption to generate 50MW is 10.1mmscf/d of which minimum take or pay component is 90% in dry season and 30% in wet season
- · ENEO's schedule requires 50MW of power to be online by end Q1 2015
- · Total GDC gas production for 2015 expected to average 10.4 mmscf/d.
Amusingly, it was only suggested the other day that VOG's now ripe for a low ball take out now 99% of the pain has been suffered, oh the irony. The valuation would allow for circa £1 after today's news, albeit one would be wise to discount management yet again.
Atb Fraser
Fraser- Haha- Did see this earlier when I logged in here and mentioned VOG.
ReplyDeleteI agree re value here (91p looks right to me) and the major issue as always with VOG is EXECUTION so I hope they don't have to cough up as and when they have delays- perhaps that's too cynical and the influence of the dark side is wearing off on me :-))
Cheers. The Leggie
Well, the good news is that importing and installing the gensets has been taken away from VOG's responsibility; they just help with making the connections. I'm hoping this means less chance of, errm, delays. Also, for once, the agreement was made by the time specified by VOG, so maybe VOG is turning more than one corner? I live in hope.
ReplyDeleteGood Evening Fiona! Yes apologies I never got that far down. One can be forgiven for living in hope with VOG, with the catalogue of delays and failings that have impacted on shareholders its certainly looking like the bottom of 'events.'
DeleteAs you rightly state from the RNS "GDC has also signed a legally binding term sheet with ENEO and Altaaqa Alternative Solutions Projects DWC-LLC ("Altaaqa") a United Arab Emirates equipment supply company. Altaaqa will provide power generation equipment and has responsibility for importing and installing the Gensets at the Douala power stations. GDC will work with Altaaqa to make the initial gas connections."
One hopes that in the event of a deterioration in performance those below the 3% shareholder could unit to change things.
Hope you've had a fab Christmas & not burnt anything:-).
TC F