Victoria Oil and Gas secures customers and loan

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LONDON (ShareCast) - Victoria Oil and Gas rose after it secured both more gas customers and a new lending facility.

The company, which has assets in Cameroon and Russia, said a further four customers had been commissioned and have begun taking its gas.

It now has 15 contracted customers using gas, with a further 10 contracted customers awaiting conversion of their facilities.

This marked an increase from six customers taking gas in November (Xetra: A0Z24E - news) 2012, the firm said.

All 25 contracts have been executed at an energy price of $16 per million British thermal units fixed for five years for thermal use.

Victoria also announced that Societe Generale (Paris: FR0000130809 - news) had offered it an initial $15m under a reserve based lending facility for a term of three years.

Kevin Foo, Chairman of VOG commented: "The commitment by Societe Generale is a very important endorsement of our company and the initial funding will help considerably in meeting our future capital needs."

The company said the facility would become effective upon finalisation of legal documentation and further details would be announced following the completion of the documentation.

Victoria's shares were up 2.9% at 14:15.

MM