StockMarketWire.com - Oil company Victoria Oil & Gas boosted its revenue in the second quarter after it produced more condensate, a light form of oil.

Revenue for the three months through June increased to $6.8m, up from $5.3m in the first quarter.

Gas production net to the company dropped to 237m standard cubic feet per day, down from 265m, but condensate sold jumped to 2,022 barrels, up from 766.

Victoria Oil & Gas said it remained vigilant with regards to the Covid-19 pandemic and adherent to authorities' guidelines in the jurisdictions in which it worked.

The lockdown in Cameroon was eased in May, but a restrictive lockdown had persisted in the YaNAO region of Siberian Russia where the company's West Medvezhye asset was located.

Victoria Oil & Gas recently served key customer ENEO Cameroon a notice of contract termination after it failed to repay debts to the company.

Victoria Oil & Gas said that, in the short term, it had lined up sales to replace over 30% of the grid power customer's take-or-pay volumes at a higher price margin via increased demand from existing customers.

At least two new customers were expected to be tied in within the next three months.

Those increased sales already represented replacement of over 50% of the revenue lost through the termination of the ENEO contract, Victoria Oil & Gas said.

'We are pleased with the resilience the Cameroon business has shown through recent times and the early strides made to replace the gas sales volumes previously allotted to ENEO,' chief executive Roy Kelly said.


At 9:46am: [LON:VOG] Victoria Oil Gas PLC share price was +0.24p at 3.71p



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