Victoria Oil & Gas : Interim Results to 30 June 2020

30 October 2020

Victoria Oil & Gas Plc

("VOG", "Group" or the "Company")

INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2020 AND Q3 2020 OPERATIONS UPDATE

Victoria Oil & Gas Plc, the integrated natural gas producing utility, today announces its unaudited interim results for the six months ended 30 June 2020 and provides an operations update for Q3 2020.

Operational Highlights

• Average daily Logbaba field gross sales rate decreased by 51% to 4.8 mmscf/d (six months to 30 June 2019: 9.9 mmscf/d) due to grid power customer ENEO ceasing consumption
• 881 mmscf of gross gas sold from Logbaba (six months to 30 June 2019: 1,785 mmscf)
• One additional industrial power customer consumed gas during the period
• 13% increase in thermal and industrial customer gas consumption for thermal use compared to H1 19
• Notice served to terminate ENEO gas sales agreement in June 2020
• La-108equipment mobilised but works put on hold due to COVID 19 restrictions

Financial Highlights

• US$12.6 million Revenue (six months to 30 June 2019: US$10.7 million)
• Adjusted EBITDA loss of US$0.8 million (six months to 30 June 2019: US$3.7 million)
• US$6.1 million cash generated from operating activities prior to movements in working capital (six months to 30 June 2019: US$4.7 million)
• US$12.5 million Net Debt position (at 31 December 2019: US$10.7 million)

Corporate Highlights

• Robert Collins appointed as Non-Executive Director
• Ahmet Dik stepped down as Chief Executive Officer
• Appointment of Roy Kelly as Chief Executive Officer
• Andrew Diamond, Finance Director resigned and working out six month notice period

Subsequent and Q3 20 Highlights

• Daily average gross gas sales rate for Q3 20 of 4.7 mmscf/d (Q2 20: 4.6 mmscf/d) of natural gas plus gross 2,438
  bbls (Q2 20: 3,548 bbls) condensate was produced safely and sold to industrial customers, resulting in net revenues of US$3.3 million (unaudited)
• During October 2020 weekday gas sales have occasionally exceeded 5 mmscf/d with a peak at 6.1 mmscf/d. This is mainly the result of a seasonal swing and the reduction of COVID-19 related issues that our customers face. One more thermal and power customer will be tied in shortly
• ENEO contract terminated on 3 July following expiry of 30 day remedy period, and receivables are being rigorously pursued
• Appointment of Rob Collins as Chief Financial Officer on 11 August 2020
• The Company continues discussions with the Cameroon State for the extension of the Matanda license
• The workover crew returned to Cameroon and recommenced the La-108 well remediation in early October. At the time of writing, we have retrieved the fish from the well, and we are cleaning out the wellbore
• The Company is pleased to announce the evolution of its CSR policies and procedures into a revised ESG initiative, to be headed by Kate Baldwin
• Roger Kennedy stepped down from Executive Chairman to Non-Executive Chairman following the General Meeting held on 29 October 2020

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

For further information, please visit www.victoriaoilandgas.com or contact:

Victoria Oil & Gas Plc
Roy Kelly / Kate Baldwin	Tel: [phone]
Strand Hanson Limited (Nominated and Financial Adviser)
Rory Murphy / James Dance / Jack Botros	Tel: [phone]
Shore Capital Stockbrokers Limited (Joint Broker)
Mark Percy / Toby Gibbs (corporate advisory)	Tel: [phone]
Jerry Keen (corporate broking)
Camarco (Financial PR)
Billy Clegg	Tel: [phone]
Nick Hennis	Tel: [phone]

Victoria Oil & Gas Plc

Unaudited Interim Condensed Consolidated Financial Statements

For the six months to 30 June 2020

CHAIRMAN'S LETTER

Dear Shareholder,

On behalf of the Board, I set out below our unaudited interim results for the six months to 30 June 2020 ("H1 20" or "reporting period"), an operational update for Q3 20 and commentary on the Company's progress.

Victoria Oil & Gas Plc ("VOG", the "Company" or the "Group") currently generates revenue by reliably and safely supplying gas through its 57% participating interest in the Logbaba Project in Douala, Cameroon, which is held by its 100% owned subsidiary Gaz du Cameroun S.A. ("GDC").

Covid-19

The spread of the virus in Cameroon has been relatively contained in comparison to other countries. A crisis management team was established at GDC in Cameroon in accordance with the corporate management plan to manage the company's activities and coordinate with the State authorities as a result of Covid-19. As part of its emergency planning policies GDC, with the local regulatory bodies and stakeholders, ensured all precautions were put in place and responses have been managed and adapted as the situation changes.

Logbaba Operations Update

The sales figures from the Logbaba Project in Cameroon are as follows:

For the six month period ended	30 June 2020	30 June 2019
	mmscf	mmscf
Gross gas sales - Logbaba
Thermal	833	731
Industrial power	48	50
Grid power	0	1,004
Total	881	1,785
Attributable gas sales - Logbaba (mmscf)	502	1,018
Average daily gas sales (mmscf/d)	4.8	9.9
Condensate sales (bbls) - Gross	4,891	10,817
Condensate sales (bbls) - Attributable	2,788	6,166

The table refers to gross Logbaba Project sales, unless specified as attributable to GDC representing its 57% interest in the project.

Gas was produced and delivered to customers in Douala on an uninterrupted basis during the reporting period without any significant safety incidents, underlining our commitment to operate in a safe and environmentally friendly manner. Our customers continue to realise the benefits of natural gas, by far the cleanest burning fossil fuel, having converted from significantly higher priced diesel or heavy fuel oil and subsequently reducing their harmful emissions in the Douala area.

Post period, Q3 2020 production update:

Quarterly gross and net gas and condensate sales at Logbaba are as follows (amounts in bold are net gas and condensate sales attributable to GDC (57%)):

	Q3 2020	Q2 2020
Gas sales (mmscf)
Thermal	232		408	224		394
Industrial power	15		26	13		22
Grid power	0		0	0		0
Total (mmscf)	247		434	237		416
Daily average gross gas sales	4.7			4.6
rate (mmscf/d)
Condensate sold (bbls)	1,390		2,438	2,022		3,548
	2