Cameroon gas producer Victoria Oil & Gas (VOG:AIM) surges 9.7% to 43.1p as it secures a $26 million debt facility to fund increased production from its Logbaba field.
The company, which we flagged at 32p earlier this year, is aiming to boost output by 30% from the current 15 million cubic feet per day to help meet strong local demand for gas. Logbaba supplies gas to the Cameroon port city of Douala.
The ability to secure debt financing - from Cameroon bank BGFIBank - is encouraging in itself but also means a return to the equity markets for fresh funds is unlikely in the near-term.
The new facility builds on an existing $4.4 million loan with the bank and the new terms include repayment over five years, a 12 month draw down period and interest of 7.15% per year.
The expansion plan will involve the drilling of two wells, an extension of the Bonaberi pipeline and an upgrade to its gas processing plant.
