The Oil Man: Victoria Oil & Gas

Victoria Oil & Gas

A flash blog this morning as I have back-to-back meetings with a great set of industry leaders. More of that in due course. I couldn't let the Victoria Oil & Gas announcement go without a mention as it is of profound importance.

Today's news from the company says that the La-107 well has found another 23 metres of wet gas sand in the lower Logbaba formation making a total of 58 metres. This is excellent news on a number of fronts.

The well will be a producer by the end of September and the additional reserves mean that GDC can conclude long-term contracts with high-usage customers. The demand for gas in Douala way exceeds what GDC can supply so this extra production is enormously profitable and adds significant value to VOG.

I remain convinced that the company is hugely undervalued and that the next few months will show why they are such a rare beast - a virtual monopoly producer with a market that is growing and remains immensely important.

The outlook for VOG is now truly mind-boggling and investors should appreciate how much this adds to the value of the business.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.