Victoria Oil & Gas Plc, has completed, conditional on admission, an equity placing of 292,307,687 new ordinary shares (Placing Shares) at a price of 3.25 pence per share (the Placing) raising £9.5 million before expenses through Fox-Davies Capital Limited.

The funds raised through the Placing will be utilised by the Company, inter alia, to complete the development of the Logbaba gas and gas condensate project in Cameroon following the increase in the Company's working interest in the project to 95%. It will also fund the final payment to acquire a one third interest in Cameroon Holdings Limited, announced in August 2011. These transactions have considerably enhanced the project economics to the Company, increasing net proved and probable gas reserves by approximately 80 billion cubic feet and the post tax NPV by $270m to $676m.

Kevin Foo, chairman of Victoria Oil & Gas, said: "This placing demonstrates continued investor confidence in VOG in very challenging markets. It was completed to finance the increased working interest in Logbaba and pay for the remainder of the acquisition costs in Cameroon Holdings both of which are considerably accretive to shareholders. The funds will enable the Company to achieve first gas production at Logbaba, which remains on schedule for Q4 2011."

The Company has also issued a further 28,439,087 new ordinary shares to key suppliers and advisors at a price of 3.25 pence per share in settlement of outstanding costs and fees, which is an additional vote of confidence in the company.

Application has been made to the London Stock Exchange for admission of 320,746,774 new ordinary shares to trading on AIM. It is expected that Admission will become effective and that trading will commence on 30 September 2011.

Following Admission, the Company will have 2,505,016,237 ordinary shares in issue. The new ordinary shares will rankpari passu in all respects with the existing ordinary shares.

Tags: Victoria Oil & Gas Plc