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Victoria Oil & Gas reveals Kevin Foo will depart as it raises £12.6mln for “new beginning”

Published: 03:15 06 Mar 2019 EST

oil and gas operations
VOG aims to grow its operations in Cameroon

Victoria Oil & Gas PLC (LON:VOG) has revealed that executive chairman Kevin Foo is signing off his tenure at the head of the company with a £12.6mln equity-based funding that promises a “new beginning” for the Cameroon gas firm.

Foo will retire as a director and executive chairman upon completion of the fundraising.

Under his stewardship, VOG has grown from an early stage explorer to become an integrated gas producer and distributor in the Duala region of Cameroon.

More recently, the company exited a tough period following a new agreement to restart supply to a key customer.

READ: VOG updates on production and funding options

Located in a region with rising gas demand the company seeks to scale up its capacity and expand its operational footprint.

These ambitions will now be supported with an injection of funds and an injection of new management.

Ahmet Dik, VOG’s chief executive, in a statement, said: “The fundraising will strengthen the company's financial position and provide the necessary support for the new board and senior management to take the company to the next level. 

“Given the gas demand in the industrial city of Douala Cameroon, and the company's strategic position of being the only onshore gas supplier and operator of the gas pipeline network, the company can now look to develop its Matanda project and optimise its Logbaba operations with a view to becoming cash flow positive in the near term.”

Roger Kennedy will step up from his current position as VOG’s senior non-executive director to take up the position of VOG’s new executive chairman. Additionally, two additional independent non-executive directors will be appointed to the new board.

Placing details

VOG is raising a total of £12.6mln through separate equity issues, both priced at 13p per share – a discount of just over 13% to yesterday’s closing price.

Some 50mln new shares are being sold to YF Finance, VOG’s largest shareholder with a 7.37% stake before the new round of equity funding. The YF shares will raise £6.5mln.

A further £6.1mln is being raised through a proposed share placing arranged by brokers Shore Capital and FirstEnergy Capital. It is expected that the shares will be bought by new and existing institutional and sophisticated investors.

The fundraising will be conditional upon shareholder approval at a general meeting, which will be set in due course.

 

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