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

Has the “jam tomorrow” bubble popped already?
Stockmarkets

Has the “jam tomorrow” bubble popped already?

Fund managers have had a good year so far. John Stepek looks at what to expect from markets until year end.
6 Dec 2021
Three stocks that should profit from the dash for digital growth
Share tips

Three stocks that should profit from the dash for digital growth

Professional investor Christopher Versace of the Digital Infrastructure and Connectivity UCITS ETF picks three digital growth stocks to buy now.
6 Dec 2021
JD Wetherspoon: why investors should head to the pub
Trading

JD Wetherspoon: why investors should head to the pub

Pub group JD Wetherspoon is a solid operator, and is due a bounce when the pandemic eases. Matthew Partridge picks the best way to play it.
6 Dec 2021
Share tips of the week – 3 December
Share tips

Share tips of the week – 3 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
3 Dec 2021

Most Popular

Bubbles grow in global property markets as house prices continue to rise
Property

Bubbles grow in global property markets as house prices continue to rise

House prices grew by 6% in the year to mid-2021 in 25 global cities, with the German property market in particular showing signs of overheating.
3 Dec 2021
Investing in time
Sponsored

Investing in time

SPONSORED CONTENT – Watch collecting can be addictive and expensive, but it can also be a very sound investment strategy
3 Dec 2021
Three safe bets on the growing online gambling sector
Share tips

Three safe bets on the growing online gambling sector

Professional investor Aaron Fischer, creator of the Fischer Sports Betting and iGaming ETF, picks three of his favourite online gambling stocks.
29 Nov 2021