UK based oil explorer, Victoria Oil and Gas Plc, reported that it had raised £9.2 million via a share placement to be used for investments. The raised fund, according to the firm, will go towards the completion of all of its gas plant facilities and the pipeline to deliver first gas production to Logbaba in Cameroon. Victoria Oil and Gas Plc undertake its operations in Africa, Russia and Kazakhstan.

The firm said it raised the amount via the placing of 368 million shares at 2.5 pence for every share, representing a discount of 9% to the share trading close as at Tuesday. The company plans to complete the fund raising via two tranches and it expected the first tranche to start trading on the 7th of September. The UK oil explorer enjoys solo status in its Africa exploration operations in Cameroon, being the only offshore gas producer in the country.

Earlier, Victoria Oil and Gas had reiterated that it was keen on delivering its first gas supplies by December from its Logbaba gas project and had subsequently signed gas sales pacts for 20 years. Victoria said it hopes to generate about 10 million cubic feet of gas per day by the mid of next year, generating gross gas sales revenue of over $1 million weekly. On the other hand, it is expectant of bolstered sales, to be pegged at 100 million cubic feet daily in the next five years, said the firm.

The company's shares were down 2.9 percent at 2.66 pence at 1035 GMT on the London Stock Exchange. Victoria Oil and Gas boasts a well built portfolio of proven and prospective oil and gas assets in West Africa and the FSU. Currently, the firm owns about 60% of the Logbaba gas field in Cameroon amongst its other controlled assets in Kazakhstan and Siberia.

The funds accrued from the raising will go into further growth and investment in its gas assets as well as expansion into the future, it reiterated. Following a substantial investment in the company in Feb 2008, Victoria's major shareholder is a consortium of influential Middle-Eastern investors led by Noor Capital PSC.

Victoria also has strategic relationships with Blackwatch Petroleum Services, an international geosciences consultancy, and Geodynamics Research, developers of IPDS passive seismic technology.

2 Sep 2010.