On a total debt of about 100 billion FCfa, the Cameroonian state makes a 15 billion FCfa advance to the electrician Eneo
15th December 2017
(Invest in Cameroon) - The Ministry of Finance has recently released, in favor of Eneo, the concessionaire of the public electricity service in Cameroon, a sum of 15 billion CFA francs, as an advance on its estimated debt to about 100 billion FCFA, we learn from sources close to the case.
The electricity generation and distribution company has, according to our sources, immediately dispatched this envelope to its own suppliers, with whom it is heavily indebted.
These include the petroleum distribution company, Tradex, of the National Refining Company (Sonara) - two companies that often supply thermal power plants with fuel - and especially the company Kpdc, owner of the gas plant. Kribi whose production capacity has been reduced by 100 MW (out of 216 MW), since last November, because of the heavy debt of the main client that is Eneo.
As a reminder, the State's outstanding payments to Eneo represent both the consumption of electricity billed to the State and its dismemberments, as well as the shortfall accumulated over the last several years (since 2012, the tariffs electricity is blocked, whereas according to the concession contract, they must be readjusted each year, according to the investments made by the concessionaire).
It seems clear BLVN really don't want to be operator:
De risk Bomono
Relinquish operator status
Complete farm-out with VOG on agreeable terms
and that BLVN know it's a deal with VOG or probably lose all of Bomono
Should the farm-out arrangement not complete, we will not be in a position to generate an alternative development plan before the existing exploration authorisation terminates in December 2018
We consider a likely risk that the Government will not approve a further extension to the exploration authorisation without attaching additional exploration work commitments
Which means VOG can either extract an even better deal from them, or probably pick it up for free
Bowleven has confirmed that it will proceed with the drilling of two appraisal wells in the Etinde reserve in 2018.
The Company said all partners in the JV are closely aligned on well locations and a final decision will be taken in early 2018, following a shallow level drilling hazard assessment and sea bottom survey to identify any immediate issues.
The initial well designs are completed and a tender process is underway to appoint a drilling contractor and other major suppliers.
The expected timings of the programme are as follows: - Final locations to be chosen after the hazards survey has been completed and assessed in Q1 2018
- Drilling vessel expected to be mobilised on site in Q2 2018
- IM-6 well spud planned for Q2 2018
- Two well drilling programmes expected to conclude in Q4 2018
At 2:27pm: (LON:BLVN) BowLeven PLC share price was -0.25p at 29p
"The Company is pleased to confirm that discussions regarding the Agreement are progressing and Bowleven and VOG continue to work with the Government of Cameroon to advance the Bomono project. Consequently, VOG has elected to exercise its option to extend the termination date of the Agreement to 31 December 2017." http://www.victoriaoilandgas.com/investors/news/bomono-farm-out-extension
day cos I CUT MY THUMB PICKLING MY ONIONS but I then read this laterin the day
A man was working on his motorcycle on the patio, his wife nearby in the kitchen. While racing the engine, the motorcycle accidentally slipped into gear. The man, still holding onto the handlebars, was dragged along as it burst through the glass patio doors.
His wife, hearing the crash, ran in the room to find her husband cut and bleeding, the motorcycle, and the shattered patio door. She called for an ambulance and, because the house sat on a fairly large hill, went down the several flights of stairs to meet the paramedics and escort them to her husband.
While the attendants were loading her husband, the wife managed to right the motorcycle and push it outside. She also quickly blotted up the spilled petrol with some paper towels and tossed them into the toilet.
After being treated and released, the man returned home, looked at the shattered patio door and the damage done to his motorcycle. He went into the bathroom and consoled himself with a cigarette while attending to his business. About to stand, he flipped the butt between his legs.
The wife, who was in the kitchen, heard a loud explosion and her husband screaming. Finding him lying on the bathroom floor with his trousers blown away and burns on his buttocks, legs and groin, she once again phoned for an ambulance. The same paramedic crew was dispatched
As the paramedics carried the man down the stairs to the ambulance they asked the wife how he had come to burn himself. She told them. They started laughing so hard, one slipped, the stretcher dumping the husband out. He fell down the remaining stairs, breaking his arm.!!
yes it's good VOG have explained the delay in 108's flow test although disappointing the rig let us down yet again. I wonder how many other days have been lost due to rig issues and whether or not Savannah are covering the cost of the cheap unrealiable Chinese junk of a rig ?!
Not sure when the Q3 data will be released but it's well overdue so it's a shame VOG didn't communicate the reason for that as well. The longer they withold the update, the more it seems that it will not be pleasant reading.
Flow rates are almost certain to be excellent so that's something, Bomono negotiation deadline getting closer, as is a new ENEO contract, though that may depend on 108 showing it's a solid producer. Fingers crossed for some Christmas cheer from VOG as it's been pretty thin cruel since we started drilling in Nov 2016
"WTI $57.40 +10c, Brent $63.57 +46c, Diff -$6.17 +36c, NG $3.03 -15cThe OPEC meeting ended up with what everyone expected, a maintenance of cuts through to the end of 2018. There was a modest tip of the hat to Russia by agreeing to a 'production ..."
Funnily enough - my biggest concern is the sort of african gas prices cited by the gang of 5 Question and answer presentation at the conference in SA. ......which probably explains why VOG was so keen to explain profit/volume management accounting basics in an RNS.
Victoria Oil & Gas
VOG today announce the completion of the La-108 well at Logbaba which has been delayed by 14 days due to electrical problems. The liner has now been run to TD and cemented in place, the production equipment will be placed in the well and then the rig will be skidded off. The well is then scheduled to be perforated and flow tested and should be on production by mid-December, it is worth remembering that the preliminary analysis of the logs showed 84.5m of net gas sands in the Logbaba formation.
VOG is one of a number of stocks that should have performed way better given the current state of the market. With Opec concluded and the new Brent contract over $63 the market is not behaving efficiently and therefore offers exceptional value in a number of stocks, VOG is one of them.
the power station contracts re-newal will be a formality I would suspect, they (ENEO) still want the gas. Just depends what price is agreed when they eventually get around to talking about the contract.
Ok so a delay which may or may not have cost some bucks but my far bigger concern is who is buying the production from mid Dec - have I missed that this has already been sold and a contract awarded at a reasonable price?
Great producing lots more and it is now proven there are reserves there that every investor thought there would be. The catch appears to be the selling all of the gas avaible at the price to recover the investment.
Hoping for some positive sales updates in the Q3 results and definitely by the yearend figures
Maybe the electrical problems were the fact that ENEO hasn't paid the bill and the rig needs power.
Hopefully the electrical issue was one that we don't pay for, I guess it depends on why it occurred.
As I said, some moths ago, nothing happens quickly or smoothly in Cameroon and I've ceased believing the dates put forward by VOG. A bit disappointed about the electrical issue and adds to my belief that there wont be much movement upwards, on a permanent basis in this share for quite some time, well into the new year I suspect. I'm not concerned however about the power station contracts coming to an end shortly, but I do think we should be trying, as much as possible, to develop smaller customers than ENEO and pushing gas to power solutions.
Well its not the news we were hoping to hear, but at least they have had the honesty to report it and in the end it is only a 14 day delay, however painful that is to all of us. I agree that the downtime should be free of charge to VOG other than our reputation and further delay in getting any new contracts signed up. Remember the extended contract of supply for Bassa and Logbaba power stations only lasts to the end of Dec.
Do you suppose they will hold off on the Q3 report till mid December now?
Victoria Oil & Gas Plc today provides an update on the Group's drilling
operations, which are managed by Gaz du Cameroon S.A. ("GDC"), a wholly owned
subsidiary of VOG.
· Liner has been run and cemented to case off well to depth of 2,859m
· Flow tests planned and La-108 expected to be a producing well by
As previously announced, well La-108 was successfully drilled to its planned
Target Depth (TD) of the 6" hole section at 2,865m Measured Depth (MD) (2,463m
TVD) on 7 November.
After reaching TD, the drilling rig experienced electrical problems that
delayed progress by 14 days. The problems have been rectified and the 4½"
liner has been run to TD and cemented in place. Current operations involve
installation of permanent production equipment in the well.
As soon as the completion equipment is run the drilling rig will be skidded
off La-108 and released. The production tree will then be installed and the
well perforated and flow tested prior to connecting it to the Logbaba gas
processing facilities. Preliminary analysis of the La-108 logs indicates 84.5m
of net gas sand in the Logbaba Formation.
The flow testing is expected to commence during December and the well will
then be put on production around mid-December.
Sam Metcalfe, the Company's Subsurface Manager has reviewed and approved the
technical information contained in this announcement.
We were promised results from LA108 before the end of Nov so they are leaving it to the last minute it seems. We are also due the Q3 statement. I really hope the news may include the signing up of at least one new contract. I guess we also want VOGs take on the Bowleven situation. Maybe enlightenment on the objective of LA109. I don't think any comment will be made about the worrying financial situation of Cam Gov. but anything on it would be interesting.
Processing plant progress and forward plan. New pipeline plans. Financial situation and it really would be great if some announcement was made about the excessive royalties in respect of future curtailment or reduction to a sensible level, that other big investors might be prepared to accept.
Well it is nearly Christmas and we deserve a Christmas present from VOG.
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