Shares plummet as Victoria Oil & Gas reports equity placing

Shares in Cameroon-focussed mining company Victoria Oil & Gas fell sharply on Wednesday after the company reported it had oversubscribed a 23m pound equity placing.

Shares in Cameroon-focussed mining company Victoria Oil & Gas fell sharply on Wednesday after the company reported it had oversubscribed a 23m pound equity placing.

The AIM-listed company reported that it had raised £23m of equity and was fully funded to meet its long-term corporate objectives to monetise the Logbaba Gas discovery and to meet its production target for 2013.

The company announced that the board planned to further strengthen itself with the appointment of a Chief Executive Officer to implement the production and revenue phase of the company's growth.

Kevin Foo, Chairman of Victoria Oil & Gas, commented: "With this capital injection, combined with the reserve-based bank facility, the company can cover the last yards in our progression to substantial cash flow. While the thermal customer business is growing solidly, the bulk of the forecast sales growth will be derived from power clients".

He added: "As a shareholder, I am acutely aware that dilution of existing shareholders is a major concern. However, I feel that ensuring we are fully funded to meet our production and cash flow targets is the best way to deliver shareholder value. There is still great uncertainty ahead in equity markets but I am greatly encouraged by the support shown from the institutional investors."

Victoria Oil & Gas' share price was down 15.33% to 1.74p at 10:28 on Wednesday.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
It's not just the UK – we're seeing pandemic housing booms across the globe
Property

It's not just the UK – we're seeing pandemic housing booms across the globe

Soaring house prices aren’t just a UK thing, they’re a worldwide phenomenon. And it’s no coincidence – the underlying cause is much the same. John Ste…
18 Jan 2021