Companies: VOG   

It is too early to tell whether we have seen the low point in the Victoria Oil & Gas share price, but, in a delayed reaction to the previous week’s big fundraising, the shares ran from 17.75p to over 30p last week – before coming back to 24.75p – as investors looked at the potential impact of new shareholders and the involvement of new technical expertise.

An Abu Dhabi-based group of investors has now taken a 29 per cent stake in VOG in a move that injects £12 million net new cash and allows the company to retire an old convertible bond. Four new directors are coming on board. Most importantly, perhaps, the company will now have the technical assistance of the oil and gas consultancies, Blackwatch Petroleum and GeoDynamics Research, which will now undertake a full review of the West Medvezhye and Kemerkol oil and gas prospects where VOG has experienced so much difficulty finding oil in commercial quantities.

I tipped the shares here in January 2006 at 162.5p. If you have held all the way through the past two years, continue to do so. It does look as if VOG has turned the corner.

Victoria Oil & Gas	AIM	£13.54m	4.76p	0.26p
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Other company articles:
Victoria gets go-ahead			31/03/2008
VOG turning the corner?			11/01/2008
VOG hits a dry hole			10/08/2007
VOG still finds the going hard			20/07/2007
Victoria switches attention to Kemerkol			05/04/2007