Victoria Oil and Gas has posted its first profit as it seeks to increase its reserves and produce more gas in Cameroon.
Preliminary results for the seven-month period ended December 31 were $1.63million with revenue jumping to $21.4million.
Victoria has changed its year end to December and revenue for the 12 months to May is $27.9million.
Operating cash flows were strong, which the group has used to reduce debt.
Executive chairman Kevin Foo, said: “During the period, our gas sales doubled when compared to the equivalent seven months in 2014.
“Our research shows that the demand for gas in Douala, Cameroon and the surrounding areas remains far in excess of our ability to supply.”
Victoria’s two-year gas supply agreement with ENEO, the local power grid operator has had a very positive impact on the business, Food said.
“The ENEO project has been the proof-of-concept for a gas- to-power solution in Cameroon. To build on this and sign up other grid power customers, we need to expand our reserves, produce greater volumes of gas and increase our process and delivery capacity.”
Victoria Oil is targeting industrial customers in the city of Douala and on a comparable basis sold 1.736mmscf (millions cubic feet) of gas (846mmscf) for the seven months.
Daily production was 8.57mmscf/d (3.95mmscf/d comparable) at contract prices of between US$9 to US$16/mmbtu for its gas.