Victoria Oil & Gas reports strong first half

Victoria Oil & Gas made a strong start to its financial year, updating the market on its six months to 30 November 2015 on Monday.

The AIM-traded natural gas producer reported revenue of $18.9m (£13.6m) for the period, up from $11.6m in the six months to 30 November 2014.

Adjusted EBITDA was $9m, a sizeable increase from 2014's $1.7m. Its net cash position of $6.3m at the end of the period was also up from the $5.1m figure on 31 May 2015.

"Our company continues to deliver increased production and strong financial results. This confirms that our fully integrated gas utility business in Cameroon works well and has helped insulate us from low oil prices and extremely challenging markets," said executive chairman Kevin Foo.

"We intend to build on this foundation to increase production and cash flow in Cameroon and elsewhere in Africa," he added.

During the period, the company reported a 126% average production rate increase to 8.85 million standard cubic feet per day.

At its Logbaba gas and condensate field in Cameroon, 1,530 million standard cubic feet of gas was sold, up from 719 million a year earlier, and 23,110 barrels of condensate was offloaded, up from 11,334 barrels.

The company also secured a 75% participating interest in the Matanda Block in Cameroon during the period, subject to regulatory approvals.