GDC has signed a legally binding term sheet with ENEO and Altaaqa Alternative Solutions Projects DWC-LLC ("Altaaqa") a United Arab Emirates equipment supply company.

Cameroon S.A ("ENEO"), Cameroon's integrated utility Company, to supply gas to two power stations located in the city of Douala ("The Agreement").

Altaaqa will provide power generation equipment and has responsibility for importing and installing the Gensets at the Douala power stations. GDC will work with Altaaqa to make the initial gas connections.

The term sheets have been signed to enable the project to be expedited to meet ENEO requirements and it is expected that these will be replaced by full contracts in early 2015.

The Agreement with ENEO is a major gas supply contract for VOG in terms of scale and profitability with guaranteed minimum take or pay gas consumption at a fixed US$9/mmbtu over the 2 year contract term.

The contract can be extended by mutual agreement. The take or pay element gives GDC the necessary incentives to allocate significant levels of gas to a single customer. The minimum take or pay levels are 9mmscf/d in the January-June dry season and 3mmscf/d in the July-December wet season.

GDC anticipates actual demand from ENEO will be higher than the minimum take or pay levels during both seasons. ENEO requires all 50MW of power to be online by the end of Q1 2015.

The Bassa Power Station is located 0.3km from our operating northern pipeline and the Logbaba Power Station is located 1.3km along the proposed eastern leg off our main line. The pipeline construction to Bassa has been completed to the power station boundaries and GDC has started pipeline construction towards the Logbaba power station, this work is scheduled to be completed by mid-January 2015. Please refer to the pipeline schematic, a link to which is provided below:

By entering into the Agreement, GDC has become a part of the Cameroon national energy strategy. ENEO have selected GDC to be a key energy supplier as it has established a gas supply network that is proven to be reliable and safe. GDC has been able to mobilisequickly, working with equipment suppliers to meet ENEO's requirement to rapidly bring on new power sources to Douala.

Based on a current production rates of 4.4 mmscf/d and assuming a minimum take or pay gas supply level to ENEO, GDC would be selling approximately 13.5 mmscf/d in the dry season and 7.4 mmscf/d in the wet season. These figures do not include any near term thermal customers which the Company expects to be online during the course of Q1 2015.

Kevin Foo, Chairman, of Victoria Oil & Gas said: "Today's agreement with ENEO is truly a game changer for VOG. We have secured a major, near termuser of gas for our Cameroon business. We are now becoming an active part of the Cameroon energy equation.

GDC and Altaaqa have been tasked by ENEO to meet an aggressive schedule to supply gas to the two power stations and we expect to deliver gas on time during the first quarter of 2015.

Adding annual average take or pay consumption of ENEO to our current production indicates average minimum production levels for 2015 of 10.4mmscf/d."

Peter den Boogert, Managing Director of Altaaqa Global, said, "Our gas power plant systems meet worldwide emission standards and do not harm our environment. These plants are designed for performance and reliability, while being more environmentally friendly compared to systems running on other fuels.

Additionally, as the generators run on natural gas, they do not require expensive after-treatments and are more economical to operate owing to more cost-effective fuel prices. Gas systems are also more flexible in fuel usage and remain efficient even with different fuel varieties."

Usman Mahmood, Director of Finance and Accounting at Zahid Group (of which Altaaqa Global is a subsidiary), added, "We recognize the vital role that Cameroon plays in the regional economy of Sub-Saharan Africa, and we understand how essential electricity is in fulfilling such a part. We are proud to be involved in a project that contributes to the improvement of the country's overall energy infrastructure."

Victoria Oil & Gas (VOG.L) is an energy utility business and hydrocarbon producer with energy supply operations in the industrial port city of Douala in Cameroon. The Company generates cash flow from its 60% owned onshore gas production wells and its energy utility subsidiary, Gaz du Cameroun S.A. (GDC), supplies cost effective, clean and reliable energy products to major industries in the region. Customers are primarily supplied with gas through an extensive pipeline network built by GDC in the Douala area.

GDC products currently include thermal gas, condensate and gas for gas-fired electricity generation. GDC gas is attractive to customers due to its reliability, price competitiveness, low hydrocarbon emissions (compared to Heavy Fuel Oil) and adaptability to meet varied power requirement needs.

VOG also holds 100% of the West Medvezhye oil and gas project near Nadym, Russia. The field has C1 plus C2 reserves of 14.4mmboe (under the Russian resource classification system, analogous to proven and probable reserves under Western conventions) in addition to best estimate prospective resources of 1.4bboe.

Cameroon Energy Market Cameroon is a stable African country that is host to a developing economy serving most of Central Africa with goods and services. A power deficit remains a major hindrance to Cameroon's economic expansion. The power grid is reliant on hydroelectric dams to supply 75% of power and the shortfall is made up from heavy fuel oil and gas.

Hydroelectric dams are highly seasonal, with stream rates significantly varying from 6,000m3 per second in the wet season to 50m3 per second in the dry season. As with many hydro electrical systems transmission loss is also a constant issue when balancing power loads across distances to different consuming regions.

The port-city of Douala is the major industrial zone within Cameroon and it requires high levels of consistently delivered grid power all year round. Currently, Cameroon's energy demand is growing at 7% annually and gas is seen as a key element to Cameroons national energy strategy.

To develop Cameroon's national energy infrastructure the state has created a Joint Venture structure whereby international private sector company's partner to provide the necessary funds and expertise to expand power output.

In 2014, Actis, the UK-based energy infrastructure investor, paid $202 million for a 56% stake in Cameroon's national integrated utility, Société Nationale d'Electricité (SONEL) and in two independent power plants, Kribi and Dibamba.

SONEL provides 933MW of power to Cameroon of which the majority is hydroelectric. ENEO was created from this partnership with the Cameroon state to deliver the next stage of the country's power infrastructure.

About Altaaqa Global Altaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc. to deliver multi-megawatt turnkey temporary power solutions worldwide.

The company owns, mobilizes, installs, and operates efficient temporary independent power plants (IPP's) at customer sites, focusing on the emerging markets of Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South East Asia, the Middle East, and North Africa.

Offering power rental equipment that will operate with different types of fuel such as diesel, natural gas, or dual-fuel, Altaaqa Global is positioned to rapidly deploy and provide temporary power plant solutions, delivering electricity whenever and wherever it may be needed.