Victoria Oil & Gas raises £23.5m to fund Cameroon gas venture

SHARES in explorer Victoria Oil & Gas plummeted yesterday, as it announced that it had raised £23.5m in an oversubscribed share placing.

Victoria Oil & Gas, which has assets in Cameroon, will use the funds to finance the roll-out of its downstream strategy at its gas project in the central African country, in which it holds a 95 per cent interest.

The proceeds will help ramp up production and sales at the Logbaba Project, so the company can deliver gas to more customers.

Following completion of the placing, the firm – which is in the process of appointing a new chief executive – will be fully funded to meet development plans, it said.

The junior stockmarket-listed firm placed nearly 1.5bn shares at a price of 1.6p each in a two-stage equity offering through Fox-Davies Capital, where Daniel Fox-Davies and Richard Hail led the team. Shares are expected to begin trading next week.

Simon Raggett and Angela Hallett from Strand Hanson also had a role in the offering.

Shares closed 20.19 per cent down at 1.64p.