It’s been a funny old year so far for VOG the shares just haven’t been trading as high as they should of it felt like there was some kind of brake on the stock slowing them down. Now after the company released news last Wednesday that they had served an eviction notice to its private partner, RSM Production Corporation, who had failed to pay its share of development costs, $7m in agreed costs for the Logbaba gas field in Douala.The mist has cleared and we now know why the market hasn’t reacted as it should.
“However, management have insisted that it has the funds to complete the onshore project, targeting proven and probable gas reserves equivalent to 35.3m barrels of oil, in time for projected first gas in Q4 this year. This will involve some re-routing of funds originally intended to develop its potentially larger Asia assets and there is speculation the company will tap the markets for more capex early next year. By then VOG hopes gas production will boost cash-flow. Expect more volatility ahead.”
So will they rise in Q4? That’s the question burning the brain-cells of most Privateers. I think they will even though it should be assumed that they will tap up the market/investors once they have production on stream. It’s still all to play for and remember that these resources are proven. Yes it’ll be a bumpy ride and problems will no doubt be encountered along the way but at least it’s all in the open now.
Watchlist and research
PS. I have taken the Cadogan profit from the 100k to 1 million CHALLENGE and invested here! Averaging @4.2
Details later today/tomorrow!